Equities Market Halts Four-Day Gaining Streak, NSEASI Dips 0.15%

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October 10, 2017/Cordros Research

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  • The equities market halted the 4-day gaining streak, with the ASI depreciating by 0.15% to 36,776.60 points, as investors took profit on previous gains.
  • Accordingly, the Month-to-Date and Year-to-Date returns reduced to 3.77% and 36.85%, respectively.
  • The Industrial Goods (-1.58%) index recorded the largest loss, followed by the Banking (-0.17%) and Consumer Goods (0.09%) indices, as investors took profit in the shares of WAPCO (-4.20%), GUARANTY (-0.05%), and NB (-0.65%) respectively. On the flip side, the Insurance (+1.22%) and Oil & Gas (+0.11%) indices recorded gains, as investors demanded for the shares of MANSARD (+5.00%) and OANDO (+0.83%) respectively.
  • Market breadth was flat, with 19 gainers and 19 losers, led by CCNN (+10.17%) and CILEASING (-9.38%), respectively. However, total volume traded increased by 34.72% to 353.14 million units, valued at N3.26 billion and exchanged in 4,201 deals.
  • Notwithstanding today’s loss, we think the market remains relatively strong, supported by broadly bullish outlook for the economy and corporate earnings in Q3-17.

CURRENCY

  • Yesterday, the apex bank injected USD 195 million into the FX market, comprising USD100 million, USD50 million, and USD45 million to the wholesale, SMEs, and invisibles windows respectively. In the parallel market, the naira remained flat against the USD at N363 while it appreciated by 0.05% to N360.31 in the I&E FX window.

FIXED INCOME AND MONEY MARKET

  • The overnight money market rate surged 1,617 bps to 48.25%, following withdrawal from the system –¬† via sale of OMO bills worth¬† N20.48 billion and yesterday’s debit for FX sales valued at USD195 million.
  • Proceedings in the treasury bills market turned bullish, as average yield contracted by 3 bps to 16.68%, owing to renewed interest in longer-tenured bills, despite the squeeze in system liquidity. Yields contracted at the long and mid segments, following interest in the 191DTM and 128DTM bills, while yield expanded at the short segment, owing to selloff of the 9DTM bill.
  • Activities were broadly bullish in the bond market, as average yield contracted by 11 bps to 15.09%. Yields contracted across all ends of the curve, driven by stoked investor interest in the 29-JUN-2019, 18-MAR-2036, and 17-MAR-2027 bonds.

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