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Gains Resurface on Nigerian Bourse, as Index Inch Up +0.17% on Renewed Interest in Industrial Goods Stocks

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L – R: Shows Oscar Onyema, CEO, The Nigerian Stock Exchange (NSE) presenting a replica of closing gong to Ms. Patience Oniha, Director General, Debt Management Office (DMO) during the Facts Behind the Lists of Federal Government Sukuk at the Exchange today.

April 10, 2018/Cordros Update

  • Gains resurfaced on the bourse, albeit marginally, as the ASI inched higher by 0.17% to 40,499.04 points, owing to renewed interests in industrial goods stocks. 
  • Accordingly, the Month-to-Date loss dipped to 2.42%, while the Year-to-Date gain improved to 5.90%. 
  • The Industrial Goods (+2.08%) index turned positive – posting the highest return among the sectoral indices – following renewed interests in WAPCO (+3.41%) and DANGCEM (+1.19%) shares.  The Consumer Goods (+0.56%) index also recorded gains, owing to interests in NB (+0.23%) stocks. On the flip side, the Banking (-1.45%), Insurance (-0.12%), and Oil & Gas (-0.02%) indices closed negative, following profit taking in GUARANTY (-1.15%), AIICO (-4.29%), and FO (-3.50%) stocks respectively. 
  • Market breadth remained negative, with 26 losers and 16 gainers, led by WEMABANK (-4.94%) and JAPAULOIL (+8.16%) respectively. Total volume of trades increased by 35.27% to 388 million units, valued at NGN4.21 billion, and exchanged in 4,222 deals. 
  • Our long-term outlook for the equities market remains positive, as strengthening macroeconomic fundamentals and expected positive corporate releases are likely to bolster gains.

CURRENCY

  • The USD/NGN depreciated by 0.10% to NGN360.38 in the I&E FX window, while it remained flat at NGN362 in the parallel market. Total turnover in the I&E FX window dipped further by 16.17% to USD217.15 million, traded within the NGN358-NGN361/USD band.

FIXED INCOME & MONEY MARKET

  • The overnight lending rate softened by 8 bps to 3.42%, from 3.50% in the previous session, as market liquidity remained buoyant.
  • The NTB market traded on a bullish note, benefitting from high system liquidity, as average yield dropped 24 bps to 14.01%. Buy sentiment was spread across all ends (short: -52 bps; mid: -30 bps; long: -5 bps) of the curve, with yields on the 30DTM (-159 bps), 170DTM (-29 bps), and 205DTM (-61 bps) bills moderating significantly.
  • Sell pressure resurfaced in the bond, as average yield rose marginally (+1 bp) to 13.61%. Yields expanded across all ends of the curve – short (+1 bp), mid (+1 bp), and long (+1 bp) – driven by selloffs of the JUN-2019 (+8bps), JAN-2026 (+3 bps), and JUL-2030 (+2 bps) bonds, respectively. 

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