Investors Bite, Updates

Nigerian Stocks Extend Losses Third Consecutive Day on Sell-Offs Across Major Sectors

Posted by InvestAdvocate on

More in Investors Bite:

L – R: Shows Tinuade Awe, Executive Director, Regulation, The Nigerian Stock Exchange (NSE) presenting a replica of the closing gong to Nuhu Yakubu, President, Nigerian Liquefied Petroleum Gas Association during a Closing Gong Ceremony at the Exchange on Tuesday.

July 3, 2018/Cordros Report

EQUITIES

  • Losses extended in the equities market, with the ASI dropping by 0.90% to 37,605.12 points, as selloffs persisted across major sectors.
  • As a result, the Month-to-Date and Year-to-Date returns moderated further to -1.76% ad -1.67% respectively.
  • The Industrial Goods (-1.51%), Banking (-1.25%), Oil & Gas (-1.16%), and Consumer Goods (-1.09%) indices closed in the red, following selloffs of the shares of DANGCEM (-0.58%), ZENITHBANK (-2.44%), MOBIL (-4.95%), and CADBURY (-5.38%), respectively. On the flip side, the Insurance (+0.57%) index closed positive, owing to demand for PRESTIGE (+9.43%) stocks.
  • Market breadth remained negative, with 33 losers and 19 gainers, led by JAIZBANK (-10.00%) and PRESTIGE (+9.43%). Total turnover rose by 42.38% to NGN2.65 billion, while total volume of trades inched up 0.45% to 257.39 million units, exchanged in 3,932 deals.
  • In our view, still-positive macroeconomic fundamentals remain supportive of gains in the long term, while persisting sideways trading, and the absence of a one-off positive trigger, calls for cautious trading by investors in the short-to-medium term.

CURRENCY

  • The forex market remained stable, with the naira trading flat against the USD at NGN362, while it strengthened by 0.03% to NGN361.28 in the IEW. Total turnover in the IEW surged by 193.65% to USD198.30 million, traded within the NGN355-NGN363/USD band.

FIXED INCOME AND MONEY MARKET

  • The overnight lending rate dropped 1,242 bps, to close at 20.08%, amidst the absence of OMO auction.
  • Proceedings in the treasury bills market were bullish, with the average yield inching lower by 0.09% to 12.77%. Yields contracted across all ends of the curve – short (-6 bps), mid (-12 bps), and long (-10 bps) – owing to interests in the 93-day (-52 bps), 156-day (-27 bps), and 226-day (-70 bps) bills, respectively. Meanwhile, at tomorrow’s NTB auction, NGN170.50 billion will be offered – NGN9.52 billion of the 91-day bill, NGN33.93 billion of the 182-day, and NGN127.06 billion of the 364-day bills.   
  • Conversely, sentiments remained bearish in the bond market, as the average yield expanded by 0.14% to 13.91%. Sell pressures in the JUL-2021 (+81 bps), MAR-2024 (+43 bps), and MAR-2037 (+20 bps) bonds, caused yield contractions at the short (+22 bps), mid (+14 bps), and long (+8 bps) segments respectively.

Click here to download full PDF copy of report

Leave a Comment

Your email address will not be published. Required fields are marked *

*