Stocks Resume First Trading Session of September Negative

September 5, 2017/InvestmentOne Research

Please click to download the Market Report for Tuesday 5th September 2017

EQUITIES:  

  • All major sectors closed in the red today as the Nigerian equities market closed the first trading session of the month negative. Following the declines in the Oil & Gas (-2.99%), Industrial (-2.11%), Consumer Goods (-0.30%) and Banking (-0.06%) sectors, the NSE-ASI ended down -0.28% to 35,403.92pts representing a market capitalisation of N12.20tr.
  • Also, market breadth index ended negative (-0.03x) as 21 stocks advanced compared with 24 stocks that declined. SEPLAT (-5.00%) was the market’s worst performer while CILEASING (+5.00%) topped the gainers’ chart.
  • Investors exchanged 230m units of shares worth N4.77bn today, a-14% decrease in total volume but a +18% increase in total value. Although NB (+0.04%) led the market in terms of value with N1.09bn worth of shares exchanged, ACCESS (+2.38%) was the most actively traded stock with c.63m units of shares traded.
  • While the recently released GDP report, which showed Nigeria exiting recession in Q2 2017, may provide some level of support to the market, we expect the ASI to be volatile going forward. Nonetheless, we see the recent sell-off as an entry opportunity in our recommended quality names.

CURRENCY:

  • The NGN depreciated at the IEFX window today, losing -1.90% to N469.92 against the GBP, -0.20% to N360.39 against the USD and -1.12% to N429.90 against the EUR.
  • At the parallel market, the NGN closed relatively unchanged at N365 against the USD. However it gained +0.47% to N430 against the EUR but shed -0.43% to N470 against the GBP.
  • We expect the NGN to continue to see support from the CBN’s FX sales.

FIXED INCOME:

  • Money market rates moderated across all tenors today, despite CBN selling N1.2bn worth of 177-day OMO bills at a 17.95% stop rate. Rates on the 1month and 3month NIBOR fell by 42bps and 31bps to 18.67% and 22.46% respectively while the 3month NIBOR rate shed 12bps to 21.27%.
  • While yield movement in the bond market was relatively muted today, investors were largely bullish, particularly on long dated bonds. Yields on the March 2036 and April 2037 bonds declined by -15bps and -18bps to 16.51% and 16.58% respectively. Yields on the 7yr and 10yr benchmark bonds also decreased, falling by -9bps and    -5bps to 16.48% and 16.71% respectively. Yield on the 5yr benchmark bond was flat at 16.47%.
  • Going forward, we expect market activity to be influenced by liquidity levels.

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

Current

35,403.92

Mkt Cap (N’tr)

12.20

Previous

35,504.62

Vol. Traded (m)

                                 230

Day Change

-0.28%

Vol. Day Chng.

-14%

WTD Return

-0.28%

Val. Traded (N’bn)

                                4.77

MTD Return

-0.28%

Val. Day Chng.

18%

YTD Return

31.74%

No. of Deals

3,716

YTD High

38,198.60

No. of Gainers

21

YTD Low

24,581.99

No. of Losers

24

52wk High

38,198.60

Top Sub Sect. (by Vol.)

BNK (77%)

52wk Low

24,581.99

Top Sub Sect. (by Val.)

BNK (42%)

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