December 21, 2017/InverstmentOne Report

Please click to download the Market Report for Thursday 21^st December 2017

EQUITIES:

·         The equities market ended positive for the second consecutive trading session today, gaining +1.10% to 38,350.64pts representing a market capitalisation of N13.65trillion.

·         Today’s performance was largely driven by the gains in DANGCEM (+442pts) as well as ETI (+37pts) and INTBREW (+21pts), which more than offset the sell-off in NESTLE (-68pts), DANGSUGAR (-41pts) and NB (-35pts).

·         Also, market breadth index closed positive (+0.11x) as 23 stocks advanced compared with 13 stocks that declined. DANGSUGAR (-5.75%) was the worst performer while BERGER (+4.94%) led the gainers’ chart.

·         While the total value of shares traded fell by -55% to N1.51billion, total volume surged by +107% to c.430m units of shares. AIICO (-1.92%) was the most actively traded stock with 211m units of shares accounting for c.49% of total volume.

·         Major sector performances was mixed as the Industrial (+2.21%) and Banking (+0.69%) finished in the green while the Oil & Gas (-0.52%) and Consumer Goods (-0.82%) declined.

·         Despite the recent sell-off in the market, we maintain our view that this presents a decent entry positions in our recommended names.

CURRENCY:

·         At the IEFX window, the NGN lost -0.11% and -0.43% to close at N361.31/USD and N427.18/EUR respectively. However, it gained +0.09% against GBP to close at N480.78.

·         The NGN ended unchanged at N365/USD and N428/EUR. However, it lost -0.21% against the GBP to close at N485 in the parallel market.

·         In the coming sessions, we expect CBN’s intervention to continue to support the local currency. 

FIXED INCOME:

·         The Overnight and Open-Buy-Back rates fell to 6.42% and 5.67% from 8.42% and 7.67% respectively. This may not be unconnected with the improvement in system liquidity on the back of the N159bn OMO and T-bill maturity that hit the system today.

·         As of time of writing, today’s NIBOR rates were yet to be published.

·         At the OMO auction today, CBN sold N143bn worth of 84-day bill at a stop rate of 13.00% and N211bn worth of 315-day bill at a stop rate of 14.80%.

·         The bond market was bullish as yields fell across the major curves today.  Yields on the 5yr and 7yr benchmark bonds shed by -5bps and -2bps to 14.00% and 13.96% respectively. Similarly, the yield on the 10yr benchmark bond fell by -25bps to 13.78%.

·         In the coming sessions, we expect market activity levels to be influenced by foreign investor participation and liquidity levels. 

Below are key NSE statistics as at the end of trades: