NIGERIA | Daily Market Wrap | 26-Feb-2018 | Elixir Research


26 Feb NIGERIA | Daily Market Wrap | 26-Feb-2018 | Elixir Research

Market Wrap |FGN debt market mixed at week open


FGN debt market mixed at week open

  • The banking system balance opened lower at ₦99.32 billion from ₦174.91 billion while the standing lending window (SLF) balance fell to ₦36.44 billion from ₦36.49 billion last Friday. The overnight rate and OBB fell by 3.58 percent points apiece to 8.83% and 7.92% respectively. 
  • The average T-Bill yield compressed by 4 basis points to 15.08%, following interest on the back of improved liquidity. However, trading was mixed at the bond market, with a bit of sell-off at the short end of the curve while there was demand at the mid-end. Regardless, the average bond yield was flat at 13.90%. 
  • We expect the Nigerian Bureau of Statistics (NBS) to make public the Q4-2017 GDP growth rate on Tuesday while the CBN is to release the manufacturing PMI on Thursday. The quality of these numbers once again will affirm the strength of recovery so far in the economy. Also, the Bank will conduct a T-Bill PMA worth ₦259.98 billion on Wednesday across the 91-, 182-, and 364-Day bill. This is not expected to impact liquidity levels but should guide market on yield direction. 
  • We expect traction at the bond space given the relative attractiveness of yields at sub 14% on average, as we progress into the week. The T-Bill end is anticipated to remain active barring liquidity mop-ups by the CBN.


Naira gains at I&E window



  • The Naira advanced by 0.14% against the Dollar at the IEW to ₦360.19/$ while it weakened at the parallel market by 0.28% to ₦363/$ respectively. At the CBN window, the local currency closed flat ₦305.95/$. 
  • Transaction volume at the IEW grossed $155.88 million.


Stocks make sluggish start at week open



  • In a somewhat sluggish start to the week, stocks traded sideways as market searched for a positive catalyst. The benchmark index was up marginally by 0.02% to close at 42,579.48 points, bringing the year-to-date return to 11.34%. 
  • Sector performance was mixed though market showed interest for the consumer goods sector. The consumer goods index advanced by +0.78%, on the back of the buy interest in NASCON (+5.11%), INTBREW (+5.00%) and PZ (+5.00%). The banking index gained +0.28% following the gains in FCMB (+4.66%), GUARANTY (+1.54%) and ZENITHBANK (+0.78%). The oil & gas index lost -2.50%, due to the decline in MOBIL (-5.00%), TOTAL (-4.82%) and SEPLAT (-2.00%). The industrial index shed -0.17%, largely driven by losses in DANGCEM (-0.38%). The insurance index was up 0.49%. 
  • Market breadth index was negative as the session recorded 21 gainers and 26 losers. CCNN topped activity chart by volume, accounting for 35.05% of the market while CCNN, DANGCEM and NB accounted for 57.54% of market value. 
  • We continue to anticipate sideways trading given the negative market breath index which underpins broadly fragile sentiment.



Corporate News: 



  • United Capital Plc today announced a final dividend of ₦0.35 kobo per share to shareholders whose names appear on the Register of Members at the close of business on March, 8 2018. AGM Date -14th April, 2018 Closure Date -31st March – April 1st 2018. 
  • Africa Prudential Plc for the full year ended December 31, 2017 proposed a final dividend of ₦0.40 kobo per share with qualification date scheduled for March 12, 2018 and closure for 13th – 19th March 2018. AGM date and payment date for March 27