February 22, 2018/InvestmentOne Report
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EQUITIES:
· The Nigerian equities market printed in positive territories today as NSE-ASI gained +0.24% to close at 42,258.78pts.
· The positive performance today was supported by the gains in UBA (+38pts), FBNH (+35pts), ZENITHBANK (+21pts) and NESTLE (+17pts) which more than outweighed the decline in NB (-35pts) and DANGSUGAR (-20pts).
· Most of the sectors closed up today with Banking (+0.71%) being the best performer. While Industrial (+0.17%) and Oil & Gas (+0.70%) also closed positive, Consumer Goods (-0.34%) printed in the red.
· Market breadth index strengthened (+0.07x) as 34 stocks advanced against 17 decliners. The top performing stock was JAPAULOIL (+5.41%) while UNIC (-6.67%) led the losers’ chart.
· Market activity declined today as total volume and value fell by c. -40% and c. -42% respectively, as investors exchanged 342million units of shares worth N3.09billion. FIDELITYBK led the market in terms of volume with c.63million units of shares worth c.N189million.
· In the absence of any catalyst, we expect the market to remain volatile in the near term as investors continue to take positions in this earnings season. 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 lost 0.07% against USD and EUR to close at N360.66 and N443.07 respectively, while it gained +0.04% against the GBP to close at N501.30.
· The NGN remained flat at N362, N500 and N445 against USD, GBP and EUR respectively at 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 shed -217bps and -308bps to close at 9.83% and 10.17% respectively. Money market rates fell today despite the OMO auction that took place where CBN sold N67bn of 182-day bills at a stop rate of 14.40%. The fall in rates may not be unconnected with the N56billion worth of OMO bills that hit the system today.
· Investors’ sentiments in the bond market were mixed today. While yields increased at the short end of the curve, it declined at the tail end of the curve. The yield on the 7-yr benchmark bond rose by +6bps to close at 13.74% but the yield on the 10-yr benchmark bonds shed -5bps to close at 13.79%. However, the yield on the 5-yr bond closed flat at 13.55%.
· In the near term, we expect market activity to be influenced by foreign investor participation as well as liquidity levels.
Below are key NSE statistics as at the end of trades:
Current | 42,258.78 | Mkt Cap (N’tr) | 15.17 | |
Previous | 42,158.32 | Vol. Traded (m) | 342 | |
Day Change | 0.24% | Vol. Day Chng. | -40% | |
WTD Return | -0.89% | Val. Traded (N’bn) | 3.09 | |
MTD Return | -4.70% | Val. Day Chng. | -42% | |
YTD Return | 10.50% | No. of Deals | 4,943 | |
YTD High | 45,092.83 | No. of Gainers | 24 | |
YTD Low | 38,187.28 | No. of Losers | 17 | |
52wk High | 45,092.83 | Top Sub Sect. (by Vol.) | BNK (66%) | |
52wk Low | 24,581.99 | Top Sub Sect. (by Val.) | BNK (62%) |