16/2/2018/InvestmentOne Report
Please click to download the Market Report for Friday 16th February 2018
EQUITIES:
· The Nigerian equities market sustained its uptrends as ASI advanced by +0.08% in today’s trading session but down -1.13% WTD.
· Today’s performance was largely driven by the gains in; NESTLE (+121pts), ZENITHBANK (+31pts), TRANSCOHOT (+7pts), NASCON(+7pts) and INTBREW (+5pts), which more than offset the losses in ACCESS (-24pts), FBNH (-20pts) and UBA (-19pts).
· Most sectors closed negative except Consumer Goods (+1.16%) which was the lone advancer. Banking and Industrial lost -0.51% and -0.17% respectively while the Oil & Gas closed flat.
· However, market breadth index ended in the red (-0.18x) with just 10 stocks advancing, compared to 30 stocks that declined. NASCON (+5.00%) was the best performer while COURTVILLE (-9.52%) led the losers’ chart.
· Market activity improved today as total volume and value increased by c. +33% and c. +28% respectively, investors exchanged 816million units of shares valued at N8.06billion. LINKASSURE was the most actively traded stocks with c.300million units of shares worth c.N246million.
· Going forward, we expect the market to trade sideways as investors continue to take positions in this earnings season. Nonetheless, the Nigerian equities market may be affected by the sentiments in the global equities markets in the near term. Despite the sell-off we saw in the market recently, we believe this may present entry opportunities into our quality names for investors with a medium to longer term horizon.
CURRENCY:
· At the IEFX window, the NGN shed -0.06% to close at N360.36/USD, while it gained +0.32% and +0.41% against the GBP and EUR to close at N504.35 and N447.11 respectively.
· The NGN closed flat at N363/USD and N500/GBP but lost -0.45% against the EUR to close at N442 in the parallel market.
· In the near term, we expect CBN’s intervention sales to continue to support the Naira in the FX market.
FIXED INCOME:
· The Overnight and Open Buy Back rates jumped from 6.67% and 6.92% to 19.50% and 18.17% respectively. The advancement in money market rates may not be unconnected with the withdrawal for FX auction which may have led to a squeeze on system liquidity.
· The bond market was very bullish today as yields contracted across most tenors. The decline in yields is most noticeable on the July 2021 bill which shed -44bps to print at 13.45%. The 5yr benchmark bond fell by -30bps to close at 13.48% while the yields on the 7yr and 10yr benchmark bond declined by -10bps to close at 13.59% and 13.71% respectively.
· Going forward, we believe activity in this space should be determined by liquidity levels and foreign investor participation.
Below are key NSE statistics as at the end of trades:
Current | 42,638.83 | Mkt Cap (N’tr) | 15.30 | |
Previous | 42,604.40 | Vol. Traded (m) | 816 | |
Day Change | 0.08% | Vol. Day Chng. | 33% | |
WTD Return | -1.13% | Val. Traded (N’bn) | 8.06 | |
MTD Return | -3.84% | Val. Day Chng. | 28% | |
YTD Return | 11.49% | No. of Deals | 4,808 | |
YTD High | 45,092.83 | No. of Gainers | 10 | |
YTD Low | 38,187.28 | No. of Losers | 30 | |
52wk High | 45,092.83 | Top Sub Sect. (by Vol.) | INS (40%) | |
52wk Low | 24,581.99 | Top Sub Sect. (by Val.) | BNK (40%) |
