Nigerian Equities Market Close in Red, NSEASI Dips 0.65%

August 14, 2017/InvestmentOne Research

Please click to download the Market Report for Monday 14th August 2017

EQUITIES:

  • Due to sell-off in DANGCEM (-248pts), as well as Tier 1 banking names; UBA (-30pts) and ZENITHBANK (-23pts), which more than offset the gains in NB (+46pts) and ETI (+22pts), the Nigerian equities market closed down -0.65% to 37,950.96pts.
  • While the Consumer Goods sector closed positive (+0.25%), all other major sectors ended in the red. The Industrial sector was the worst performer, down -1.08% whilst the Oil & Gas and Banking sector lost -0.34% and -0.28% respectively.
  • Furthermore, market activity declined compared to last Friday as investors exchanged 316m units of shares worth N4.2bn. This represented a -11% and -33% decrease in total volume and value respectively.

§  Also market breadth index closed negative (-0.09x) as 18 stocks advanced, against 27 stocks that declined. FIDSON (+4.68%) was the market’s best performer compared to CILEASING (-9.26%) which led the losers’ chart.

  • Although expectation of earnings release from the remaining Tier 1 names yet to release should be supportive of the ASI, the potential for further profit-taking on recent gains remains.

CURRENCY:

  • At the IEFX window, the NGN firmed by +0.63% against the USD to berth at N362.50. It also recorded marginal gains of +0.24% and +0.35% against the GBP and EUR to end the session at N472.19 and N428.60 levels respectively.
  • In the parallel market, the Naira lost -0.27% and -0.47% against the Dollar and EUR to close at N368 and N432 levels respectively while closing flat against the GBP at N476.
  • We expect NGN’s performance to continue to see support from FX sales by the apex bank as well as traction with IEFX window.

FIXED INCOME:

  • Money market rates inched up across tenors today as CBN further squeezed system liquidity via sales of c.N180m and c.N9.21bn worth of OMO bills at 17.95% and 18.55% stop rates respectively. The Overnight and Open-Buy-Back rates rose to 99.25% and 99.60%.
  • In subsequent sessions, we expect upward pressure on rates as system liquidity remain low.
  • In response to limited system liquidity, the bond market opened the week on a bearish note as yields inched up across tenors. While yields on the 5yr and 10yr benchmark bonds closed flat at 16.36% and 16.53% , yield on the 7yr benchmark bond expanded by 13bps to 16.48%.
  • We expect activity in subsequent session to be influenced by liquidity level.

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

Current

37,950.96

Mkt Cap (N’tr)

13.08

Previous

38,198.60

Vol. Traded (m)

                                 316

Day Change

-0.65%

Vol. Day Chng.

-11%

WTD Return

-0.65%

Val. Traded (N’bn)

                                4.22

MTD Return

5.88%

Val. Day Chng.

-33%

YTD Return

41.21%

No. of Deals

4,055

YTD High

38,144.02

No. of Gainers

18

YTD Low

24,581.99

No. of Losers

27

52wk High

38,198.60

Top Sub Sect. (by Vol.)

BNK (84%)

52wk Low

24,581.99

Top Sub Sect. (by Val.)

BNK (81%)

 

opan



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