Stocks Close Negative on First Trading Day of New Week on Decline in Bellwether Tickers

L – R: Shows Oscar Onyema, CEO, NSE; Ade Bajomo, Executive Director, Market Operations and Technology, NSE; Honorable Minister of Science and Technology, Dr. Ogbonnaya Onu; Chief Patrick Ezeagu, Chairman, Association of Stockbroker Houses of Nigeria (ASHON) and Engr. Mohammed Daggash, National Council Member, NSE at the commissioning of The NSE Data Centre on Monday at the Exchange.

August 28, 2017/InvestmentOne Research

Please click to download the Market Report for Monday 28th August 2017

EQUITIES:  

  • The equities market closed the first trading session of the week negative due to the decline in bellwether stocks; NB (-115pts), GUARANTY (-102pts), DANGCEM (-50pts) and ZENITHBANK (-27pts). These performances more than outweighed the gains in TOTAL (+19pts) and PZ (+10pts).
  • Consequently, the NSE-ASI closed down -0.90% to 36,317.31pts representing a market capitalisation of N12.52tr.
  • Furthermore, market breadth index also ended negative (-0.24x) as 30 stocks declined against just 9 stocks that advanced. TOTAL (+9.09%) was the best performer while TRANSEXPR (-5.00%) led the losers’ chart.
  • Also, market activity declined as investors exchanged 348m units of shares worth N2.98bn, a -18% and -8% decrease in total volume and value respectively, compared to last Friday’s session. CUSTODYINS (-0.29%) was the most actively traded stock with 191m units of shares worth N648m exchanged.
  • While the Oil & Gas sector closed positive (+0.28%), all other major sectors closed negative. The Banking sector (-1.62%) was the worst performer, while the Consumer (-1.35%) and Industrial (-0.22%) sectors ended in the red.
  • While we expect the market to be volatile going forward as Q2 2017 earnings season comes to an end, we view the recent sell-off as an entry opportunity in our recommended quality names.

CURRENCY:

  • The NGN depreciated by -0.83% to N466.29 against the GBP and -1.16% to N431.22 against the EUR while it was flat at N359.58 against the USD at the IEFX window.
  • At the parallel market, the local currency remained relatively unchanged at N370 against the USD, N478 against the GBP and N433 against the EUR.
  • Going forward, we expect the local currency to continue to see support from the CBN’s FX sales.

FIXED INCOME:

  • Although CBN’s OMO auction ended in a no sale today, the Open-Buy-Back and Overnight rates expanded to 25.00% and 26.75%, from 12.00% and 12.58% respectively. While N101bn worth of OMO bills will be maturing on Thursday, we expect the Apex bank to continue to mop up liquidity in defence of the local currency. As such, rates in the money market are likely to remain high.
  • As at time of writing, NIBOR rates were yet to be published.
  • Yield movement in the bond market was mixed today with the yields on the June 2019 and April 2037 falling by 10bps and 4bps to 16.80% and 16.79% respectively. This said, the yield on the July 2021 surged by 32bps to 16.83%. Yields on the 5yr and 7yr benchmark bonds closed flat at 16.37% and 16.57% respectively while the yield on the 10yr benchmark bond shed 1bp to 16.76%.
  • Going forward, we expect market activity to be influenced by liquidity levels.

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

Current

36,317.31

Mkt Cap (N’tr)

12.52

Previous

36,646.46

Vol. Traded (m)

                                 348

Day Change

-0.90%

Vol. Day Chng.

-18%

WTD Return

-0.90%

Val. Traded (N’bn)

                                2.98

MTD Return

1.32%

Val. Day Chng.

-8%

YTD Return

35.14%

No. of Deals

3,849

YTD High

38,198.60

No. of Gainers

9

YTD Low

24,581.99

No. of Losers

30

52wk High

38,198.60

Top Sub Sect. (by Vol.)

BNK (27%)

52wk Low

24,581.99

Top Sub Sect. (by Val.)

BNK (33%)

 

opan



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