Nigerian Stocks Sustains Bullish Drive, NSEASI Gains 0.54%

July 20, 2017/InvestmentOne Research

Please click to download the Market Report for Thursday 20th July 2017

EQUITIES:

  • With trades worth c.N2.18bn, the All Share Index advanced by +0.54% at the end of today’s session due to buying interest in tickers across sectors. Hence, the index YTD return rose to +25.38% while market capitalisation stands at c.N11.61trillion.
  • Gains in DANGCEM (+49.61pts), NESTLE (+38.08pts), and WAPCO (+37.93pts) was largely responsible for today’s positive close, offsetting decline in ACCESS (-20.21pts), PZ (-9.25pts) and 7UP (-8.84pts).
  • NEIMETH (+9.52%) topped the list of 29 advancers’ while 7UP (-4.99%) led the laggards’ list. Hence, market breadth index (+0.11x) closed positive.
  • Market turnover weakened when compared with previous session as investors traded 191m units of stocks valued at c.N2.18bn in 3,718 deals. This represents -42% and -33% decline in both volume and value traded respectively. PRESTIGE was the most actively traded stock with 26m units while GUARANTY led the value chart with c.N692m worth of stocks traded.
  • Major sectoral indices closed in the green; Industrial (+2.19%), Banking (+0.52%), Consumer (+0.46%) and Oil & Gas (+0.06%). 
  • In the near term, we expect continued support to ASI performance from positive Q2 2017 earnings release by corporates. This, in addition to likelihood of corporate action announcement may see the index sustain the ongoing positive momentum in subsequent sessions. 

CURRENCY:

  • The NGN continued to close at N305-306 levels against the USD at the interbank market as CBN maintained its intervention near the end of trading. However, the NGN gained +0.29% to N40.84 against the GBP and lost -0.72% to N364.61 against the EUR.
  • While the NGN remained unchanged at N366 against the USD and N420 against the EUR, it gained +0.60% to N470 against the GBP. At the IEFX window, the NGN depreciated by -1.10% to N367.60 against the USD.
  • Going forward, we expect the local currency to continue to see support from the CBN’s FX intervention sales. 

FIXED INCOME:

  • The Open Buy Back and Overnight rates remained relatively flat at 4.83% and 5.21% respectively today as N97bn worth of OMO bills matured. However with CBN conducting a late OMO auction today, selling N128bn worth of bills at 17.95% and 18.55% stop rates after market closed, we expect money market rates to expand tomorrow. As at time of writing, NIBOR rates were yet to be published.
  • At the bond market, investors remained largely bearish as yields trended upwards on average. While the yield on the 7yr benchmark bond was unchanged at 16.16%, yield on the 5yr benchmark bond inched up 3bps to 16.14%. Yield on the 10yr benchmark bond fell by 1bp to 16.24%.
  • Going forward, we expect market activity to be influenced by liquidity levels.

Below are key NSE statistics as at the end of trades:

Current

33,695.83

Mkt Cap (N’tr)

11.61

Previous

33,514.93

Vol. Traded (m)

                                 191

Day Change

0.54%

Vol. Day Chng.

-42%

WTD Return

1.31%

Val. Traded (N’bn)

                                2.18

MTD Return

1.75%

Val. Day Chng.

-33%

YTD Return

25.38%

No. of Deals

4,055

YTD High

34,375.60

No. of Gainers

29

YTD Low

24,581.99

No. of Losers

19

52wk High

34,375.60

Top Sub Sect. (by Vol.)

BNK (33%)

52wk Low

24,581.99

Top Sub Sect. (by Val.)

BNK (21%)

opan



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