February 28, 2018/InvestmentOne Report
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EQUITIES:
· The Nigerian equities market closed bullish today as ASI advanced by +2.44%.
· Following the gains in bellwether stocks: DANGCEM (+607pts),NB (+129pts), NESTLE (+92pts), ZENITHBANK (+48pts), STANBIC (+42pts) and UNILEVER (+38pts), which more than offset the losses in UBN (-12pts) and TRANSCORP (-7pts).
· Similarly, market breadth index closed positive with 31 stocks gaining compared to 23 stocks that declined.
· CCNN (+8.52%) was the best performer while COURTVILLE (-6.90%) topped the losers’ chart.
· Sectors were broadly bullish with Industrial sector (+4.15%) having the best performance. Similarly, Consumer Goods (+2.45%), Banking (+0.78%) and Oil & Gas (+0.22%) closed in the green.
· In the same vein, total volume and value increased by +30% and +23% respectively as investors exchanged 572million units of shares valued at N10.80billion.
· 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:
· While the Naira gained +0.89% and +0.47% to close at N494.85/GBP and N437.84/EUR, it, however, shed -0.07% against the USD to close at N360.41 in the IEFX window.
· In the parallel market, the Naira remained unchanged against the USD and EUR at N363/USD and NN445/EUR while it appreciated by +0.40% against the GBP to close at N502.
· In the near term, we expect CBN’s intervention sales to be supportive of the Naira in the FX market.
FIXED INCOME:
· Today, the Overnight and Open-Buy-Back rates fell by -107bps and -125bps to close at 4.50% and 3.75% respectively. This may not be unconnected with the anticipation of c.N109bn worth of OMO bills maturing tomorrow which is expected to ease system liquidity.
· At today’s NTB auction, the CBN sold N12.998bn, N64.993bn and N51.995bn of the 91-day, 182-day and 364-day bill at respective stop rates of 11.85%, 13.49% and 13.50%. We highlight that the offered amount in today’s NTB was c.N130bn lower than the expected c.N260bn going by the NTB Q1 calendar. The decline was largely noticeable on the amount offered for the 364-day bills despite the slight increase in the amount offered for the 91-day and 182-day bills. This might be an indication of Federal Government’s plan to reduce local debt given the recent successful issuance of Eurobond. Also, the stop rates on the 91-day, 182-day and 364-day bill were -10bps, -16bps and -20bps lower than the last auction
· The bond market was fairly quiet today as yields remained unchanged across most tenors. While the yields on the 5yr and 7yr benchmark bond inched up by +6bps and +1bp to close at 13.61% and 13.72% respectively, the yield on the 10yr benchmark bond remained unchanged at 13.76%.
· Going forward, we expect activities in this space to be influenced by system liquidity as well as foreign investor participation.
Below are key NSE statistics as at the end of trades:
Current | 43,330.54 | Mkt Cap (N’tr) | 15.55 | |
Previous | 42,299.56 | Vol. Traded (m) | 572 | |
Day Change | 2.44% | Vol. Day Chng. | 30% | |
WTD Return | 1.78% | Val. Traded (N’bn) | 10.80 | |
MTD Return | -2.28% | Val. Day Chng. | 23% | |
YTD Return | 13.30% | No. of Deals | 5,142 | |
YTD High | 45,092.83 | No. of Gainers | 31 | |
YTD Low | 38,187.28 | No. of Losers | 23 | |
52wk High | 45,092.83 | Top Sub Sect. (by Vol.) | BNK (68%) | |
52wk Low | 24,581.99 | Top Sub Sect. (by Val.) | BNK (40%) |