Domestic Bourse Down on Sell-Offs in Consumer Goods Counters

L – R: Shows Oladele Afolabi, Director, Portfolio Management, DMO; Titi Odunfa Adeoye, Chief Executive Officer, Sankore Investments; Oscar Onyema, CEO NSE ; Nnamdi J. Okonkwo, MD/CEO, Fidelity Bank Plc and Jubril Enakele, CEO, Zenith Capital Plc during NSE Bloomberg CEO Roundtable at the Exchange on Tuesday.

October 9, 2018/Cordros Update

EQUITIES    

  • The bears resurfaced in the domestic bourse, as the market closed 0.08% lower at 32,417.70 points, following selloffs of major consumer goods stocks.
  • Among sectoral indices, the Consumer Goods (-1.44%) index posted the largest loss, following a selloff of UNILEVER (-6.67%) shares. The Insurance (-0.54%) and Oil & Gas (-0.37%) indices also closed negative, owing to losses in the shares of NEM (-3.54%) and OANDO (-2.88%), respectively. Conversely, the Banking (+0.64%) and Industrial Goods (+0.12%) indices closed positive, following appreciations in FBNH (+4.42%) and NESTLE (+0.36%) shares. 
  • As a result, the Month-to-Date and Year-to-Date losses inched up slightly to -1.06% and -15.23%, respectively.
  • Market breadth turned negative with 20 gainers and 21 losers, led by CORNERST (+10.00%) and UNIONDAC (-9.68%) respectively.  Total volume and value of trades rose by 189.29% and 9.43% to 349.53 million units and NGN1.46 billion respectively, exchanged in 2,832 deals.
  • The absence of a positive catalyst and political concerns ahead of the 2019 election guide our conservative outlook for equities in the short-to-medium term. However, stable macroeconomic fundamentals remain supportive of recovery in the long term. 

CURRENCY

  • The USD/NGN strengthened by 0.09% to NGN364.27 in the I&E FX window, while it closed flat at NGN361 in the parallel market. Total value of trades dropped 16.9% to USD106.40 million, consummated within the NGN358-NGN365/USD band.

FIXED INCOME AND MONEY MARKET 

  • The overnight lending rate fell by 58 bps to 10.00%, in the absence of any significant outflows.
  • Sentiments in the NTB market were bullish, as average yield declined 5 bps to 13.24%. Demand for the 177DTM (-30 bps and 282DTM (-37 bps) bills, led to yield contraction at the mid (-6 bps) and long (-19 bps) segments, respectively. Yield at the short end of the curve was flat.
  • Trading in the bond market was also bullish, as yields compressed by 5 bps, on average, to 14.82%. There was demand across the short (-13 bps), mid (-1 bp) and long (-2 bps) segments, with the JUN-19 (-23 bps), MAR-2024 (-8 bps) and MAR-2037 (-12 bps) bonds recording the largest contractions, respectively.

Click here to download full PDF copy of report

opan



investadvocate