Nigerian Stocks Close Last Trading Day Positive, as NSEASI up 0.25%

August 11, 2017/InvestmentOne Research

Please click to download the Market Report for Friday 11th August 2017

EQUITIES:

  • The equities market ended the week on a positive note as the benchmark NSE-ASI gained +0.25% to berth at 38,198.60pts. The index YTD return now stands at +42.14% while market capitalisation rose to N13.16trillion.
  • This performance reflected buying interest in WAPCO (+43.76pts), UBA (+39.08pts) and STANBIC (+29.12pts) which offset the losses in GUARANTY (-39.42pts), ZENITHBANK  (-22.85pts) and NESTLE (-18.48pts).
  • Market breadth index (-0.11x) however closed negative as 29 stocks led by HONEYWELL(-5.00%) declined compared to 19 stocks topped by WAPCO (+5.00%) which gained points.
  • Value turnover  rose by +13% to c.N6.3bn while volume of trades  declined by -2% to 353m units of stocks. GUARANTY (-1.15%) led both the volume and vale charts with c.60m units of shares worth c.N2.46bn.
  • Major sectoral indexes closed positive: Industrial (+2.01%), Oil & Gas (+0.57%), Banking (+0.20%) and Consumer (+0.03%).
  • Going into the new week, while expectation of earnings release from the likes of UBA, ACCESS and GUARANTY could provide some level of support for the index performance, we highlight potential for profit-taking on recent gains in the index.

CURRENCY:

  • The NGN appreciated by +0.47% to N364.78 against the USD and +0.16% to N473.32 against the GBP at the IEFX window today while it shed -0.48% to N430.08 against the EUR.
  • At the parallel market, the NGN closed flat at N367 against the USD, N477 against the GBP and N430 against the EUR.
  • Going forward, we expect the CBN to continue its FX intervention sales which should be supportive of the local currency.

FIXED INCOME:

  • Money market rates expanded across all tenors today as CBN’s N20.5bn OMO auction today, at 17.95% and 18.55% stop rates, squeezed system liquidity. The 1month and 3month NIBOR rates inched up 95bps and 99bps to 19.04% and 20.10% respectively while the 6month NIBOR rate increased by 38bps to 23.54%.
  • At the bond market, yield movement remained largely muted as the CBN’s continued squeeze on system liquidity constrained activity levels. The yields on the 5yr, 7yr and 10yr benchmark bonds were unchanged at 16.36%, 16.25% and 16.53% respectively.
  • Going into the new week, we expect market activity to be influenced by liquidity levels

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

Current

38,198.60

Mkt Cap (N’tr)

13.17

Previous

38,102.85

Vol. Traded (m)

                                 354

Day Change

0.25%

Vol. Day Chng.

-2%

WTD Return

2.07%

Val. Traded (N’bn)

                                6.30

MTD Return

6.57%

Val. Day Chng.

13%

YTD Return

42.14%

No. of Deals

4,983

YTD High

38,198.60

No. of Gainers

19

YTD Low

24,581.99

No. of Losers

29

52wk High

38,198.60

Top Sub Sect. (by Vol.)

BNK (79%)

52wk Low

24,581.99

Top Sub Sect. (by Val.)

BNK (79%)

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