Nigerian Stocks Halt Bearish Run, as NSEASI up 1.03%

August 22, 2017/InvestmentOne Research

Please click to download the Market Report for Tuesday 22nd August 2017

 EQUITIES:  

  • Similar to yesterday’s trading session, the equities market performance was largely driven by DANGCEM (+458pts). This combined with the gains in NESTLE (+46pts) and UBN (+42pts), more than offset the sell-off in ZENITHBANK (-86pts).
  • As such, the NSE-ASI closed up +1.03% to 36,962.48pts, representing a market capitalisation of N12.74tr.
  • However, major sectors closed mixed with the Consumer (+0.28%) and Industrial (+2.08%) sectors closing in the green while the Banking (-1.03%) and Oil & Gas (-0.28%) ended negative.
  • Market breadth index closed neutral today as 22 stocks gained, matched by 22 stocks that declined. TOTAL (+5.00%) was today’s best performer against CONOIL (-9.74%), which led the losers’ chart.
  • With this said, market activity declined with total volume and total value falling by -34% and -41% respectively as investors exchanged 244m units of shares worth N3.67bn. NESTLE (+1.68%) led the market in regards to value with N1.25bn worth of shares exchanged while LIVESTOCK (+4.40%) was the most actively traded stock with c.101m units of shares.
  • Going forward, we believe the market may remain volatile in the near term with the markdown on GUARANTY later this week, while the release of UBA and ACCESS bank’s Q2 2017 results could provide some level of support to the ASI.

CURRENCY:

  • At the IEFX window, the NGN strengthened by +0.11% to N359.60 against the USD, +0.54% to N464.62 against the GBP and +0.43% to N425.85 against the EUR.
  • While the NGN remained unchanged at N370 against the USD and N432 against the EUR, it depreciated by -0.42% to N475 against the GBP at the parallel market.
  • Going forward we expect the local currency to continue to see support from the CBN’s FX sales.

FIXED INCOME:

  • At the money market, rates closed mixed today with the 1month and 3month NIBOR rates shedding 10bps and 70bps to 19.94% and 23.84% respectively while the 6month NIBOR rate increased by 59bps to 22.11%.
  • Although N96bn worth of OMO bills will be maturing on Thursday, we expect CBN to maintain its stance on keeping a tab on liquidity levels. As such, we see rates in the money market staying high in the near term.
  • While activity levels remained muted in the bond market, there was some demand for bonds at long end of the curve with the yield on the March 2036 and April 2037 falling by 2bps and 13bps to 16.38% and 16.46% respectively. Yields on the 5yr and 7yr benchmark bonds were unchanged at 16.38% and 16.40% respectively while the yield on the 10yr benchmark bond inched up 3bps to 16.56%.
  • In the coming sessions, we expect market activity to be influenced by liquidity levels.

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

Current

36,962.48

Mkt Cap (N’tr)

12.74

Previous

36,584.44

Vol. Traded (m)

                                 244

Day Change

1.03%

Vol. Day Chng.

-34%

WTD Return

0.11%

Val. Traded (N’bn)

                                3.67

MTD Return

3.12%

Val. Day Chng.

-41%

YTD Return

37.54%

No. of Deals

5,110

YTD High

38,198.60

No. of Gainers

22

YTD Low

24,581.99

No. of Losers

22

52wk High

38,198.60

Top Sub Sect. (by Vol.)

BNK (36%)

52wk Low

24,581.99

Top Sub Sect. (by Val.)

BNK (36%)

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