Stocks Halt Three-Day Losing Streak as NSEASI Inch Up 0.19% on Consumer Goods Gains

L – R: Shows Ade Bajomo, Executive Director, Market Operations and Technology, NSE presenting a gong to Dr. Femi Oyetunji, Group Managing Director/Chief Executive Officer at the Closing Gong Ceremony to Commemorate Its 30th Anniversary on Wednesday.

September 13, 2017/InvestmentOne Research

Please click to download the Market Report for Wednesday 13th September 2017

EQUITIES:  

  • Gains in the Consumer Goods sector (+1.14%) halted the negative close to the ASI over the last three trading sessions, as the equities market gained +0.19% to close at 35,464.34pts.
  • Today’s performance was largely driven by the gains in NESTLE (+91pts), GUARANTY (+31pts) and UNILEVER (+22pts), which more than offset the declines in STANBIC (-34pts) and OANDO (-12pts).
  • While the Banking sector (+0.22%) also closed positive, the Oil & Gas (-0.88%) and Industrial (-0.39%) ended in the red.
  • Furthermore, market breadth index ended negative (-0.06x) as 16 stocks gained, against 21 stocks that declined. NEM (+4.76%) led the stocks that gained while PRESCO (-4.99%) was the worst performer.
  • Also, market activity levels decreased with total volume and value down -68% and -70% respectively as investors exchanged 120m units of shares worth N1.74bn. ACCESS (+0.62%) was the most actively traded stock with c.14m units of shares, ZENITHBANK (-0.48%) topped the value chart with N282m worth of shares exchanged.
  • 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:

  • While the NGN gained +0.11% to N427.69 against the EUR, it shed just -0.03% to N475.24 against the GBP and -0.06% to N360.22 against the USD at the IEFX window.
  • At the parallel market, the local currency remained relatively flat at N367 against the USD, N476 against the GBP and N436 against the EUR.
  • Going forward, we expect NGN to continue to see support from CBN’s FX sales, with $250m offered to the market earlier this week.

FIXED INCOME:

  • Given the absence of an OMO auction today, which may not be unconnected with the CBN’s N164bn T-bill auction, the Open-Buy-Back and Overnight rates fell by 67bps and 8bps to 19.33% and 19.88% respectively. As at time of writing, the NIBOR rates and results of the T-bill auction were yet to be published.
  • At the bond market, investors were largely bullish today, which may not be unconnected with the anticipation of N160bn worth of OMO bills maturing tomorrow. Demand for bonds was more focused on short dated maturities with the yield on the Feb 2020 falling by 61bps to 16.22%. Although the yield on the 7yr benchmark bond was unchanged at 16.48%, yields on the 5yr and 10yr benchmark bonds declined by 19bps and 11bps to 16.28% and 16.51% respectively.
  • Going forward, we expect market activity to continue to be influenced by liquidity levels.

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

Current

35,464.34

Mkt Cap (N’tr)

12.22

Previous

35,397.52

Vol. Traded (m)

                                 120

Day Change

+0.19%

Vol. Day Chng.

-68%

WTD Return

-1.37%

Val. Traded (N’bn)

                                1.74

MTD Return

-0.11%

Val. Day Chng.

-70%

YTD Return

31.96%

No. of Deals

3,232

YTD High

38,198.60

No. of Gainers

16

YTD Low

24,581.99

No. of Losers

21

52wk High

38,198.60

Top Sub Sect. (by Vol.)

BNK (62%)

52wk Low

24,581.99

Top Sub Sect. (by Val.)

BNK (41%)

opan



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