FREE

The Market Today - 26 April, 2017

FAAC disbursement drops to ₦467 billion in March
The Federal Accounts Allocation Committee disbursed ₦467 billion in March, representing a 9% decrease from allocations in the previous month largely due to a reduction in the Gross Statutory Revenue to ₦290 billion from ₦325 billion in the previous month. The reduction in statutory revenue was attributed to a drop in crude oil export volumes owing to pipeline leakages and shutdown of facilities for turnaround maintenance. Asides the ₦290 billion from Gross Statutory Revenue, other revenue sources include ₦61 billion excess petroleum product tax, ₦69 billion from Value added tax, ₦40 billion from exchange gain, and ₦6 billion refund to the Federal Government (FG) by the Nigerian National Petroleum Corporation. A breakdown of revenue allocation revealed the FG, State Government and Local Government received ₦180 billion, ₦117 billion and ₦87 billion respectively. We expect the stability in the Niger Delta region amidst stable oil price to continue to support government revenue outlook in the near term.

NSE ASI up 28bps as rally fades
After a strong rally at week open, the NSE ASI soft-pedalled, notching just 28bps amidst continued reaction to earnings announcement. Following the softened momentum, we believe the NSE ASI will hold on to gains in the coming session, supported by continued investor reaction to mostly positive earnings announcement.

Stock Watch: Riding on positive market reaction to Q1’17 earnings (PAT up 97% y/y), AFRIPRUD has gained 12% in a six-session rally. The stock currently trades at ₦2.66 with ytd losses cut to 12.8%.

Market sustains bullish trading amidst OMO auction
The fixed income market persisted bullish yesterday with yields moderating across most bonds and bills. We expect trading to continue bullish in today’s session as market participants anticipate Thursday’s ₦480 billion bond maturity.