Bulls Resurface on Nigerian Equities Market, Month-to-Date Loss Moderates to -0.67%

L – R: Shows Oscar Onyema, CEO NSE with Paul Smith, President/CEO, CFA Institute after Oscar’s Keynote presentation, titled: “Investing In Nigeria: Exploring the Investment Potential of One Africa’s Leading Economy” at 71st CFA Institute Annual Conference, “themed: Future of Global Investing” in Hong Kong on Monday.

May 16, 2018/Cordros Report


  • Gains resurfaced in the equities market, as the ASI increased by 0.90% — largest gain since 27th April – to 40,992.97 points. This was largely attributable to renewed interests in DANGCEM shares.
  • The Month-to-Date loss moderated to -0.67%, while the Year-to-Date gain improved to 7.19%.
  • The Consumer Goods (+1.63%) index posted the largest gain, while the Industrial Goods (+0.74%) and Insurance (+0.31%) indices followed suit, owing to demands for UNILEVER (+4.91%), DANGCEM (+2.67%), and MANSARD (+4.70%) shares respectively. On the flip side, the Banking (-0.39%) and Oil & Gas (-0.34) indices closed lower, driven by profit-taking in the shares of ACCESS (-1.79%) and FO (-3.13%).
  • Market breadth remained negative, with 30 losers and 15 gainers, led by SKYEBANK (-9.41%) and CUTIX (+5.00%) respectively. Total volume of trades increased by 27.60% to 259.49 million units, valued at NGN4.36 billion, and exchanged in 4,000 deals.
  • Strengthening macroeconomic fundamentals remain supportive of our outlook for gains in the equities market.


  • Pressure on the naira eased in the I&E FX window, as the USD/NGN appreciated by 0.23% to NGN360.77 – reversing accumulated loss of 0.16% in the last two sessions – while it remained flat at NGN363 in the parallel market. Meanwhile, total turnover in the IEW dropped by 36.78% to USD215.87 million, traded within the NGN314.50-NGN363/USD band. Yesterday, the apex bank injected USD210 million into the FX market, allocating USD100 million to the wholesale window and USD55 million apiece to the SMEs and invisibles segments.


  • The overnight lending rate rose by 825 bps to 24.67%, amidst persisting strain in liquidity. OMO and treasury bills worth NGN262.61 billion and NGN67.68 billion will mature into the system tomorrow.
  • Proceedings in the NTB market were bearish, as average yield increased by 14 bps to 13.05%. The mid (+7 bps) and long (+83 bps) ends of the curve recorded yield expansions, while yield contracted at the short (-58 bps) segment. Notable bills include the 120DTM (+127 bps), 309DTM (+191 bps), and 29DTM (-183 bps) respectively. At today’s NTB auction, NGN3.38 billion, NGN16.92 billion, and NGN13.54 billion of the 91-day, 182-day, and 364-day bills were allotted. The bills were 2.16x oversubscribed, with yields closing lower across the 182-day (10.50%; previously 10.95%), and 364-day (10.70%; previously 11.15%) bills. The yield on the 91-day was unchanged, closing at 10.00%.
  • Sentiments were mixed in the bond market, albeit with a bearish bias, as average yield inched up 2 bps to 13.18%. Yield expanded at the short (+1 bp), mid (+2 bps), and long (+3 bps) ends of the curve, following selloffs of the JUL-2021 (+15 bps), MAR-2027 (+4 bps), and APR-2037 (+5 bps) bonds.

Click here to download full PDF copy of report

Leave a Comment

Your email address will not be published. Required fields are marked *