Market UpdateWeekly Market Update

Nigerian Equities/Fixed Income Market Review: Week Ended 23rd September, 2016

Equities Market

In three green and two red days, the performance index of the Nigerian Bourse for the second time in a row (WoW) finished above its opening by 110Bpts. Aside HWC5-Index and NSE-Consumer Gds-Index that closed red, other observed market indexes ended the week on a positive note.

The week’s trading activities produced 33 advancers and 25 lagers. NSEASI YtD return is currently -1.66% while the Market Capitalization YtD return stood at –N147.577 billion.

During the week, the share price of Pz Cussons was adjusted for 50K final dividend on the 19th September, 2016. Tripple Gee was also adjusted for 3k dividend 23rd September, 2016. The payment dates are 7th and 19th October 2016 respectively. Please note that the 5k dividend announced by the management of Fidson Healthcare will be adjusted on Monday 26th September, 2016 (payment date is 21st October, 2016).

We maintained our position that traders should pay more attention to their trades and seriously mind their stops (up (+) or down (-)). Investment greed should be avoided at all cost.

Volume Index for week’s activity is 0.89 while buy volume and sell volume is estimated at 74% and 26% respectively.

Fixed Income Market

CBN offered a series of OMO auctions this week, they sold a total of N408.18 billion (N60.17 billion, N140.86 billion, N47.46 billion and N159.68 billion of the 245-day, 364-day, 251-day and 356-day bills respectively),Activities in the Nigerian Treasury Bills market closed on a bearish note, with average yield rising by 37bps to close at 19.40%.

Aggressive OMO auctions (mentioned above) on Thursday and Friday at stop rates of 18.00% (apiece on the 245 and 251-day bills) and 18.50% (tenors for 364 and 356-day bills) sent yields rising, reversing the downward trend seen prior, and the session day after the MPC meeting.

Active demand dominated the bonds space, following yield contraction in all traded bills; average yield declined by 35bps to close at 15.88% w/w. The yield contraction came as a result of the actions of local investors buying to cover short positions after the MPC refrained from hiking interest rate on Tuesday.

International investors reportedly took positions in the market ahead of the MPC meeting. There was buying interest across the curve; short (-40bps), mid (-29bps) and long (-32bps). In particular, the APR 2017 (-85bps to 18.55%) bond attracted the most interest, trailed by the JUL 2017 (-64bps to 19.97%) note.

At the time of writing, the NGN/USD, NGN/GBP and NGN/EUR were trading at N307.79, N414.43 and N363.56 respectively. At the parallel market, NGN/USD, NGNGBP and NGN/ EUR closed at N435.00, N560.00 and N475.00 respectively.

 

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Market UpdateWeekly Market Update

Nigerian Equities/Fixed Income Market Review: Week Ended 23rd September, 2016

Equities Market

In three green and two red days, the performance index of the Nigerian Bourse for the second time in a row (WoW) finished above its opening by 110Bpts. Aside HWC5-Index and NSE-Consumer Gds-Index that closed red, other observed market indexes ended the week on a positive note.

The week’s trading activities produced 33 advancers and 25 lagers. NSEASI YtD return is currently -1.66% while the Market Capitalization YtD return stood at –N147.577 billion.

During the week, the share price of Pz Cussons was adjusted for 50K final dividend on the 19th September, 2016. Tripple Gee was also adjusted for 3k dividend 23rd September, 2016. The payment dates are 7th and 19th October 2016 respectively. Please note that the 5k dividend announced by the management of Fidson Healthcare will be adjusted on Monday 26th September, 2016 (payment date is 21st October, 2016).

We maintained our position that traders should pay more attention to their trades and seriously mind their stops (up (+) or down (-)). Investment greed should be avoided at all cost.

Volume Index for week’s activity is 0.89 while buy volume and sell volume is estimated at 74% and 26% respectively.

Fixed Income Market

CBN offered a series of OMO auctions this week, they sold a total of N408.18 billion (N60.17 billion, N140.86 billion, N47.46 billion and N159.68 billion of the 245-day, 364-day, 251-day and 356-day bills respectively),Activities in the Nigerian Treasury Bills market closed on a bearish note, with average yield rising by 37bps to close at 19.40%.

Aggressive OMO auctions (mentioned above) on Thursday and Friday at stop rates of 18.00% (apiece on the 245 and 251-day bills) and 18.50% (tenors for 364 and 356-day bills) sent yields rising, reversing the downward trend seen prior, and the session day after the MPC meeting.

Active demand dominated the bonds space, following yield contraction in all traded bills; average yield declined by 35bps to close at 15.88% w/w. The yield contraction came as a result of the actions of local investors buying to cover short positions after the MPC refrained from hiking interest rate on Tuesday.

International investors reportedly took positions in the market ahead of the MPC meeting. There was buying interest across the curve; short (-40bps), mid (-29bps) and long (-32bps). In particular, the APR 2017 (-85bps to 18.55%) bond attracted the most interest, trailed by the JUL 2017 (-64bps to 19.97%) note.

At the time of writing, the NGN/USD, NGN/GBP and NGN/EUR were trading at N307.79, N414.43 and N363.56 respectively. At the parallel market, NGN/USD, NGNGBP and NGN/ EUR closed at N435.00, N560.00 and N475.00 respectively.

 

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