L-R: Co-founder and Partner, Verod Capital Management Limited, Eric Idiahi; Chief Operations and Information Officer, Fidelity Bank Plc, Gbolahan Joshua; Managing Partner, Synergy Capital Managers, Dr Akintoye Akindele, Managing Partner, Sefton Fross, Olayemi Anyanechi at the TechMoney Africa 2019 Conference which took place at the University of Lagos, Akoka … Monday
June 10, 2019/Cordros Report
EQUITIES
Nigerian equities market kick-started the week on a bearish note as the benchmark index declined by 0.36% to close at 30,322.19 points, following sell-offs of Consumer Goods & Banking stocks.
Thus, the Month-to-Date and Year-to-Date losses increased to 2.40% and 3.53% respectively.
On sectoral performance, all sectors closed in the red – save for the Insurance (+0.02%) index — with the Consumer Goods (-0.62%), Oil & Gas (-0.21%), Banking (-0.10%) and Industrial Goods (-0.02%) indices declining. Notable stocks include SOVRENIN (+8.70%), UNILEVER (-7.59%), OANDO (-3.75%), ETI (- 2.00%), and CCNN (-10.00%) respectively.
Market breadth was negative, with 14 gains and 20 losers, led by CCNN (-10.00%) and UAC-PROP (+10.00%) shares, respectively. Total volume of trades declined by 19.04% to 247.39 million units, valued at NGN3.48 billion, and exchanged in 3,434 deals.
In the absence of a positive catalyst, we guide investors to trade cautiously in the short term. However, stable macroeconomic fundamentals and compelling valuation remain supportive of recovery in the mid-to-long term.
CURRENCY
The USD/NGN appreciated by 0.04% to NGN360.63 at the I&E FX window, and by 0.28% to NGN361 at the parallel market. Total turnover in the IEW decreased by 35.3% to USD213.79 million, with trades consummated within the NGN359.00- NGN361.50/USD band.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 129 bps to 12.71%, as banks funded for the weekly FX wholesale auction.
Activities in the treasury bills market were bullish, as average yield compressed by 20 bps to 12.67%. Demand was spread across the short (-13 bps), mid (-31 bps) and long (-17 bps) segments, with respective yields on the 87DTM (-80 bps), 108DTM (-85 bps) and 192DTM (-53 bps) bills contracting.
Trading in the bond market was bearish as average yield expanded by 4 bps to close at 14.21%. Selloffs were spread across the short (+8 bps) and long (+1 bp) segments, with respective yields on the JUN-2019 (+31 bps) and JUL-2034 (+15 bps) bonds expanding. On the flip side, yield at the mid segment was flat.
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