NSE Bullish Momentum Enters Seventh Straight Day, as ASI YtD Return Now +41.93%

August 9, 2017/InvestmentOne Research

Please click to download the Market Report for Wednesday 9th August 2017

EQUITIES:

  • Another day of positive close for the ASI today with a gain of +0.38%  as the Nigerian bourse’s bullish run entered its seventh day.  The index YTD return now stands at +41.93% while market capitalisation rose to c.N13.15trillion.
  • Buying interest in NESTLE (+104.02pts), GUINNESS (+35.60pts) and GUARANTY (+28.28pts) was largely responsible for today’s positive close, cancelling out the decline in ETI (-36.86pts), FBNH(-15.68pts) and DANGSUGAR (-9.44pts).
  • GUINNESS (+10.25%) topped the gainers’ chart while CHAMPION (-9.32%) led the laggard list. Market breadth index (-0.02x) however fell into negative territory as 21 stocks advanced compared to 23 decliners.
  • Profit-taking on recent gain on CCNN (-1.02%) led to a marginal decline in Industrial tracker (-0.01%) while Consumer (+1.46%), Banking (+0.04%) and Oil & Gas (+0.01%) trackers recorded appreciable to marginal gains.
  • In subsequent sessions, we see support to ASI performance from buying interest in Tier 1 banking names as investors await the release of Q2 2017 earnings scorecards from these corporates.

CURRENCY:

  • At the IEFX window, the NGN appreciated by +0.18% to N367.00 against the USD and +7.10% to N398.57 against the EUR. However, it shed -1.39% to N477.59 against the GBP.
  • The local currency remained unchanged at N366 against the USD, N477 against the GBP and N428 against the EUR at the parallel market.
  • Going forward, we expect the local currency to continue to see support from the CBN’s FX sales.

FIXED INCOME:

  • CBN resumed its OMO sales today, selling close to N12bn worth of bills at 17.95% and 18.55% stop rates to drain system liquidity. As such, the 1month NIBOR rate jumped 72bps to 18.88%. However, the 3month and 6month NIBOR rates shed 24bps and 2bps to 21.42% and 23.24% respectively.
  • Yields movement in the bond market remained relatively unchanged as CBN’s stance on squeezing system liquidity continued to constrain activity levels. Yields on the 5yr, 7yr and 10yr benchmark bonds closed at 16.19%, 16.30% and 16.53%.
  • Although N113bn worth of OMO bills will be maturing tomorrow, we expect the Apex bank to maintain its stance in squeezing system liquidity. As such, we are likely to see yields in the fixed income space remain high.

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

Current

38,144.02

Mkt Cap (N’tr)

13.15

Previous

37,999.56

Vol. Traded (m)

                                 329

Day Change

0.38%

Vol. Day Chng.

51%

WTD Return

1.92%

Val. Traded (N’bn)

                                6.10

MTD Return

6.42%

Val. Day Chng.

20%

YTD Return

41.93%

No. of Deals

4,600

YTD High

38,144.02

No. of Gainers

21

YTD Low

24,581.99

No. of Losers

23

52wk High

38,144.02

Top Sub Sect. (by Vol.)

BNK (58%)

52wk Low

24,581.99

Top Sub Sect. (by Val.)

BNK (29%)

opan



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