Nigerian Stocks Open Bullish First Trading Day of the Week

December 4, 2017/InvestmentOne Report

Please click to download the Market Report for Monday 4th December 2017

EQUITIES:

·         The NSE-ASI closed the first trading day of the week on a bullish note, following the gains in NESTLE (+34pts), NB (+27pts), FBNH (+18pts), DIAMONDBNK (+7pts) and CADBURY (+7pts) which neutralized the losses in GUARANTY (-25pts) and GUINNESS (-21pts).

•    As a result, the equities market advanced +0.08% to close at 37,974.58pts, representing a market capitalization of N13.22tr.

•    However, market breadth index, a measure of investors’ sentiment, closed negative (-0.06x) as 19 stocks gained against 25 stocks that declined. CADBURY (+10.12%) was the top gainer, while FIDSON (-5.00%) had the worst performance.

•    There were mixed movements across sectors today. While Consumer Goods (+0.44%) and Industrial (+0.10%) closed in the green, Banking (-0.55%) and Oil & Gas (-0.45%) closed in the red zone.

•    The total volume and value fell by c.-95% and c.-70% to c.500m units of shares and N6.3bn respectively compared to last Thursday’s figures. CUSTODYINS (-3.85%) was the most actively traded stock with c.70m units of shares worth c.N262m.

•    Going forward, we highlight the potential for profit taking in the absence of any major catalyst to drive the market further in the near term. However, we remain optimistic on our recommended names and advise entry into them ahead of the next earnings season and corporate action.

CURRENCY:

·         In the IEFX window, the naira shed -0.75% against the GBP to close at N484.97. Nonetheless, it gained +0.09% against the USD to close at N360.32 and +0.15% against the EUR to close at N424.87.

·         While the Naira traded flat against the GBP in the parallel market to close at N480, it appreciated +0.27% and +0.47% against the USD and EUR to close at N363 and N428 respectively.

·         Going forwards, we expect the naira to continue to trade range bound in the FX market as it continues to see support from CBN’s FX intervention sales.

FIXED INCOME:

·         Money market rates contracted today, which may not be unconnected with improvement in system liquidity from -N54bn to N184bn as well as the absence of an OMO auction. As a result, the Overnight and Open Buy Back rates declined by 575bps and 433bps to close the day at 23.33% and 21.50% respectively.

·         As at the time of writing this report, NIBOR rates were not available.

·         Yields on most tenors in the bond market closed flat, as yields on 5yr, 7yr and 10yr benchmark bonds remain unchanged at 14.52%,14.89% and 14.87% respectively.

·         We expect the market performance in coming sessions to be largely determined by system liquidity levels and foreign investor’s participation.

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

Current

37,974.58

Mkt Cap (N’tr)

13.23

Previous

37,944.60

 

Vol. Traded (m)

500

Day Change

0.08%

Vol. Day Chng.

-96%

WTD Return

0.08%

 

Val. Traded (N’bn)

  6.36

MTD Return

0.08%

Val. Day Chng.

-70%

YTD Return

41.30%

 

No. of Deals

4,966

YTD High

38,198.60

No. of Gainers

19

YTD Low

24,581.99

 

No. of Losers

25

52wk High

38,198.60

Top Sub Sect. (by Vol.)

BNK (54%)

52wk Low

24,581.99

Top Sub Sect. (by Val.)

BNK (49%)

 

opan



investadvocate