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Weekly Market Wrap - 24 August 2018

Shortened week ends in positive territory                                                         

The ASI posted slight gains in a shortened week, rallying 63bps today to clinch a 45bps w/w gain. This positive activity was led by the Industrial Goods sector (d/d: +123bps; w/w:+196bps) which was in turn boosted by DANGCEM (d/d:+217bps; +682bps w/w). The Banking sector  was positive on the day (+25bps) thanks to upticks in ETI (+417bps) and ZENITHBANK (+46bps), which offset losses in GUARANTY (-79bps), but prior activity in blue-chips dragged the sector 304bps lower w/w. Meanwhile, the Consumer Goods (d/d: -43bps; w/w: -218bps) and Oil and Gas (d/d: -3bps; w/w:-23bps) sectors both closed down as ETERNA (-164bps) and DANGSUGAR (-68bps) dragged the indices.                                                

Stock Watch: ETERNA has  lost 6% in the last seven sessions, the stock is currently trading at ₦6.00 and has returned 48% ytd, outperforming the Oil and Gas sector (ytd: -11%).                                                         

Yields head southwards in FI market                                                     

The T-bills space remained positive at week close as yields declined 2bps d/d and 12bps w/w amid buoyant liquidity of ₦264 billion. Notably, yields on the 27DTM and 62DTM bills moderated 16bps and 25bps to settle at 10.28% and 11.24% respectively. Likewise, sentiment in the bond space was also positive as yields on benchmark bonds moderated 4bps d/d albeit rising by 1bp w/w. Notable buying was observed on the 16.39% FGN JAN 2022 and 14.20% FGN MAR 2024 bonds as their yields declined 12bps and 17bps to settle at 14.33% and 14.58% respectively.                                                                

This week, the naira depreciated ₦0.35 w/w at the I&E FX Window to settle at ₦362.50 against the dollar while remaining unchanged at ₦358.50 in the parallel market.