Stocks Resume Week Negative on Declines in Bellwether Counters

September 11, 2017/InvestmentOne Research

Please click to download the Market Report for Monday 11th September 2017

 EQUITIES:  

  • The equities market closed the first trading session of the week negative as investor sentiment, as gauged by the market breadth index, ended negative (-0.04x).
  • Today’s performance was largely driven by the declines in bellwether stocks; DANGCEM (-247pts), GUARANTY (-63pts) and NESTLE (-23pts), which outweighed the gains in ETI (-17pts), FBNH (+16pts) and UBA (+11pts).
  • Consequently, the NSE-ASI closed down -0.81% to 35,664.94pts, representing a market capitalisation of N12.29tr.
  • Furthermore, market activity decreased significantly as investors exchanged just 115m units of shares worth N2.17bn, a -25% and -30% decline in both total volume and values respectively.
  • Although ZENITHBANK was the most actively traded stock with c.20m units of shares, NESTLE (-0.82%) led the market in regards to value with N726m worth of shares traded.
  • AIRSERVICE (+4.87%) was the market’s best performer while OKOMUOIL (-4.92%) led the losers’ chart.
  • Oil & Gas (+0.68%) was the only sector to close positive as all other major sectors ended in the red. Industrial (-1.01%) was the worst performer while the Banking (-0.40%) and Consumer Goods (-0.37%) also closed negative.
  • In the near term, we expect the ASI to continue to trade sideways in the absence of a positive catalyst to drive market momentum. Nonetheless, we see the recent    sell-off as an entry opportunity in our recommended quality names.

CURRENCY:

  • At the IEFX window, the NGN depreciated by -0.25% to N359.40 against the USD and gained +0.36% to N430.18 against the EUR. At the close of trading the NGN was fairly unchanged at N473.24 against the GBP.
  • While the NGN closed relatively flat at N432 against the EUR, it depreciated by -0.54% to N367 against the USD and -0.42% to N472 against the GBP at the parallel market.
  • Going forward, we expect the local currency to continue to see support from the CBN’s FX intervention sales.

FIXED INCOME:

  • Despite CBN continuing to mop up excess system liquidity today, the Overnight and Open Buy Back rates declined to 23.08% and 22.33%, from 30.91% and 29.16% respectively. The Apex bank sold N20m 87-day OMO bills and N7.1bn    192-day OMO bills at 16.00% and 17.95% stop rates respectively. As at time of writing, NIBOR rates were yet to be published.
  • CBN’s squeeze on system liquidity also limited activity levels in the bond market as yield movement was fairly muted. Yields on the 5yr, 7yr and 10yr benchmark bonds were unchanged at 16.47%, 16.53% and 16.62% respectively. With this said, there was some demand on long dated maturities with the yields on the July 2030 and July 2034 falling by 2bps and 4bps to 16.50% and 16.47% respectively.
  • Going forward we expect market activity to continue to be reflective of liquidity levels.

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

Current

35,664.94

Mkt Cap (N’tr)

12.29

Previous

35,957.24

Vol. Traded (m)

                                 115

Day Change

-0.81%

Vol. Day Chng.

-25%

WTD Return

-0.81%

Val. Traded (N’bn)

                                2.17

MTD Return

0.45%

Val. Day Chng.

-30%

YTD Return

32.71%

No. of Deals

4,622

YTD High

38,198.60

No. of Gainers

20

YTD Low

24,581.99

No. of Losers

24

52wk High

38,198.60

Top Sub Sect. (by Vol.)

BNK (62%)

52wk Low

24,581.99

Top Sub Sect. (by Val.)

BNK (41%)

Please find below the NASD Pricelist for Monday 11th September, 2017.

Company

Symbol

Prev Close

Close Price

Chg

% Chng

Deals

Volume

Value

AIR LIQUIDE PLC

SDAIRLIQ

6.00

6.00

0.00

0.00

1

                100

                 600.00

FRIESLAND CAMPINA WAMCO NIGERIA PLC

SDFCWAMCO

148.00

140.00

-8.00

-5.41

12

         195,958

     27,498,960.00

 

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