No respite for NSE at week open, ASI down 72bps
As key sectors continue to shed points, the Nigerian Stock Exchange All-Share Index trended further southwards at the start of the week, losing 72bps on the day. Despite modest gains in heavyweight stock DANGCEM (+41bps), the Industrial Goods sector (-207bps) led the losers chart in today’s session amidst weightier losses in WAPCO (-494bps). The Banking sector (-195bps) remained in the red for the eleventh consecutive session following selloffs across both Tier I – GUARANTY (-226bps) and ZENITHBANK (206bps) and Tier II – FCMB (-909bps) and DIAMONDBNK (-511bps) banking names. The Consumer Goods (-9bps) and Oil & Gas (-2bps) sectors however lost marginally following mixed closes across sector names. Notably, whilst FLOURMILL (+203bps) and ETERNA (+493bps) advanced, NB (-35bps) and MOBIL (-464bps) recorded losses. Whilst we expect losses on the exchange to simmer down as bargain hunting surfaces, we believe negative sentiment will remain dominant as the week progresses.
Stock Watch: FCMB has lost 23% in the last six sessions. The bank led the loser’s chart on the day and currently trades at ₦2.00. Nonetheless, FCMB remains in positive territory for the year, up 35% ytd – outperforming the Banking sector’s ytd return of 1.2%.
Healthy system liquidity supports fixed income demand
The fixed income market traded relatively bullish today, supported by healthy system liquidity. Trading in the T-bills space was more positive, with buying momentum tilted towards the short-dated bills even as yields moderated 40bps on average. Notably, yields on the 17DTM, 31DTM, and 94DTM bills declined 124bps, 151bps, and 71bps to 12.02%, 9.42%, and 11.78% respectively. Trading in the bond market was however more quiet – albeit with a buying tilt as yields on benchmark bonds moderated 7bps on average. Healthy buying interest on the 16.39% FGN JAN 2022 and 12.40% FGN MAR 2036 bonds saw their yields moderate 12bps and 8bps to 13.33% and 13.34% respectively.
System liquidity remains relatively healthy and should be supported by imminent inflows – ₦300 billion maturity of the 10.70% FGN MAY 2018 bond and FAAC disbursements (due on Wednesday). In light of this, we anticipate further buying post Tuesday’s Democracy Day break.
Vetiva provides clients with independent and unbiased access to analysis and opinion. We keep our clients on the cutting edge of market information and provide up to date market intelligence on quoted companies. Our services allow brokers, investment firms, and asset managers focus their energies on developing investment strategies and client relationships.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.