13/12/2018/Cordros Update
EQUITIES
- The equities market sustained its bearish run for the second consecutive session, as the ASI dipped by 0.24% to 30,568.05 points, following substantial sell-offs in SEPLAT shares.
- Thus, the Month-to-Date and Year-to-Date losses increased to 0.99% and 20.07%, respectively.
- On sectoral performance, heavy losses in the Oil & Gas (-4.15%) and Consumer Goods (-0.10%) indices masked gains across Banking (+0.44%), Industrial (+0.12%), and Insurance (+2.46%) indices. The notable stocks include SEPLAT (-9.83%), NESTLE (-0.34%), UBN (+8.33%), INTBREW (+1.87%), and MANSARD (+10.00%), respectively.
- Market breadth was negative with 23 losers and 21 gainers, led by UCAP (-9.86%) and MANSARD (+10.00%) stocks respectively. Total volume traded moderated by 21.5% to 193.25 million units, valued at NGN3.69 billion, and exchanged in 2,950 deals.
- Our outlook for equities in the near-to-medium term is negative, and we guide investors to trade cautiously, amidst absence of a near term positive catalyst and political jitters ahead of the upcoming 2019 elections. However, macroeconomic fundamentals remain stable and supportive of recovery in the long term.
CURRENCY
- The USD/NGN depreciated slightly by 0.06% to NGN365.00 in the I&E FX window, while it appreciated by 0.27% to NGN364.00 in the parallel market. Total turnover in the IEW increased by 32.7% to USD418.89 million, with trades consummated within the NGN358.00-366.00/USD band.
FIXED INCOME AND MONEY MARKET
- The overnight lending rate eased 4,525 bps to 17.25%, following inflows from matured OMO and treasury bills worth NGN498.71billion and NGN52.65 billion respectively. The CBN mopped up NGN295.81 billion via OMO auction, selling NGN24.00 million of the 91DTM, NGN37.04 million of the 182DTM and NGN258.53 billion of the 364DTM, at respective stop rates of 11.90%, 13.50% and 15.00%.
- Trading in the NTB secondary market were mixed, with a bearish tilt, as average yield rose by 4 bps to 15.69%. Selloffs of the 7DTM (+250 bps) bill led to yield expansion at the short (+29 bps) end of the curve. Conversely, yields at the mid (-5 bps) and long (-11 bps) segments contracted, on the back of demand for the 140DTM (-57 bps) and 343DTM (-37 bps) bills, respectively.
- Proceedings in the bond market were also mixed, as yield fell by 1 bp, on average, to 15.53%. Investor interest was high at the mid (-6 bps) and long (-1 bp) segments, with the JAN-2026 (-13 bps) and JUL-2034 (-3 bps) bonds recording respective contractions. Conversely, a selloff of the JUN-2019 (+29 bps) bond led to yield expansion at the short (+5 bps) end of the curve.
Click here to read full PDF copy of report
