December 13, 2017/InvestmentOne Report
Please click to download the Market Report for Wednesday 13th December 2017
EQUITIES:
· The Nigeria equities market closed in the red, largely driven by the losses in GUARANTY (-169pts), ZENITHBANK (-90pts), NB (-83pts), DANGCEM (-55pts) and WAPCO (-28pts) which more than outweighed the gains in ETI (+36pts) and DANGSUGAR (+15pts) as the ASI lost -1.00% to close at 38,534.64pts.
· Furthermore, major sectors closed down with the exception of the Oil and Gas (+0.09%). Banking (-2.24%) was the worst performer in today’s trading session while Industrial (-1.74%) and Consumer Goods (-0.48%) printed in negative territories.
· Market breadth index ended negative (-0.07x) as 26 stocks declined, led by PRESCO (-4.98%), while BERGER (+4.93%) topped the 19 stocks that gained.
· Total volume and value traded contracted by c.-30% and c.-84% to c.323m units of shares worth c.N4bn respectively, compared to yesterday’s figure. STERLNBANK (-3.85%) was the most actively traded stock with c.43million units of shares worth c.N43m.
· The equities market was bearish today, following the sell-off in major stocks in the Banking and Industrial sector. While continued profit taking may have been responsible for decline in NSE-ASI today, investors’ concern on declining yields in the fixed income space may account for the decline in Banking names. Notwithstanding, we remain optimistic on our recommended names and advise entry into them ahead of the next earnings season and corporate action.
CURRENCY:
· In the IEFX window, the Naira lost -0.01% and -0.12% against the USD and GBP to close at N360.41 and N480.10. respectively. However, it closed flat against the EUR at N422.18.
· The Naira continued to trade flat at N363/USD while it lost -0.42% and -0.23% against the GBP and EUR to close at N482 and N426 respectively in the parallel market.
· Going forward, we expect the Naira to continue to remain stable with support from CBN’s FX intervention sales.
FIXED INCOME:
· Money market rates inched up today as Overnight and Open Buy Back rate rose by 8bps and 17bps to close at 3.00% and 2.50% respectively. Going forward, we could see a decline in money market rates as N70.83bn worth of OMO bills and N131.41bn worth of Treasury Bills mature on Thursday in the absence of any OMO auction. As at the time of writing this report, NIBOR rates were not available.
· The bond market was bullish as yields on most maturities contracted, which may not be unconnected with improvement in liquidity levels as well as the anticipation of lower stop rates at today’s bond auction. While the yields on the 5yr and 7yr benchmark bonds remained unchanged at 14.35% and 14.08%, the yield on 10yr bond shed 75bps to close at 13.45%.
· At the bond auction today, DMO sold N24.77bn of the 5yr bond and N52.81bn of the 10yr bond at respective stop rates of 13.19% and 13.21%. The stop rates were quite low compare to the last auction in November where the stop rates were 14.79% and 14.80% respectively.
· In the coming sessions, we expect market activities to be largely influenced by liquidity levels, foreign investor participation and the outcome of today’s bond auction.
Below are key NSE statistics as at the end of trades:
Current | 38,534.64 | Mkt Cap (N’tr) | 13.42 | |
Previous | 38,924.63 | Vol. Traded (m) | 324 | |
Day Change | -1.00% | Vol. Day Chng. | -30% | |
WTD Return | -1.84% | Val. Traded (N’bn) | 4.40 | |
MTD Return | 1.56% | Val. Day Chng. | -84% | |
YTD Return | 43.39% | No. of Deals | 5,168 | |
YTD High | 39,534.14 | No. of Gainers | 19 | |
YTD Low | 24,581.99 | No. of Losers | 26 | |
52wk High | 39,534.14 | Top Sub Sect. (by Vol.) | BNK (80%) | |
52wk Low | 24,581.99 | Top Sub Sect. (by Val.) | BNK (62%) |