March 8, 2018/Cordros Capital
EQUITIES
- The equities market closed positive, with the ASI inching higher by 0.33% to 43,092.63 points, owing to interests in major stocks.
- Accordingly, the Month-to-Date loss dropped to -0.55%, while the Year-to-Date return improved to 12.68%.
- The Consumer Goods (+0.92%) index recorded the largest gain, while the Banking (+0.65%) index followed suit – halting two consecutive sessions of loss – following renewed interests in the shares of NB (+0.72%) and GUARANTY (+2.94%) shares respectively. On the other hand, the Insurance (-0.85%), Industrial Goods (-0.54%), and Oil & Gas (-0.03%) indices posted losses, owing to profit-taking in MANSARD (-4.36%), DANGCEM (-1.13%), and FO (-0.22%) shares.
- Market breadth remained positive, with 30 gainers and 27 losers, led by JAPAULOIL (+9.88%) and CILEASING (-9.28%). Total volume of trades surged by 112.63%, valued at NGN3.39 billion (-34.48%), and exchanged in 4,340 deals.
- We look for continued gains on the domestic bourse, on the back of expected positive corporate earnings, which are likely to buoy investor sentiments.
CURRENCY
- The naira appreciated against the USD by 0.02% to NGN360.26 in the I&E FX window, while it remained flat at NGN362 in the parallel market. Total turnover in the I&E FX window fell by 39.59% to USD120.43 million.
FIXED INCOME AND MONEY MARKET
- The overnight lending rate declined, dropping 225 bps to 10.25%, driven by inflows from matured OMO bills worth NGN152.93 billion. The CBN mopped up NGN150.00 billion (259DTM bill) via OMO sales. NGN100 billion of the 91DTM bill was also offered via OMO auction. However, there were no sales.
- Investors were downbeat in the NTB market as average yield rose by 4 bps to 14.22%. Yields expanded across the short (+9 bps) and long (+2 bps) ends of the curve, owing to selloffs of the 22DTM (+40 bps) and 344DTM (+56 bps) bills. Conversely, yields contracted at the mid (-2 bps) end of the curve, driven by demand for the 148DTM (-37 bps) bill.
- Proceedings turned bullish in the bond market, as average yield inched lower by 2 bps to 13.68%. There were yield contractions at the short (-5 bps) and mid (-2 bps) ends of the curve, driven by demand for the FEB-2020 (- 18 bps) and JUL-2030 (-5 bps) bonds. Yields at the long (+1 bp) segment expanded, owing to selloffs of the MAR-2036 (+2 bps) bond.