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The Market Today - 30 April 2018

Mixed sentiment returns at week open                                                              

The Nigerian bourse returned to its pattern of sideways trading at week open after closing well in the green at the close of last week. The NSE ASI notched a meagre 6bps on the day. Coming off the one-day break, we expect sideways trading sentiment to filter into Wednesday's session as participants continue to cherry pick across select names.                                                                               

Stock Watch: MOBIL released its Q1’18 results today, reporting Revenue of ₦45 billion (Q1’17: ₦25 billion) and PAT of ₦2.8 billion (Q1’17: ₦13 million). The stock gained 23bps today and has declined 10% ytd, currently trading at ₦174.80.                                                               

Quiet trading day in F.I Market at week open                                                   

Interbank call rate declined 91bps to 1.92% as liquidity remained relatively healthy in the absence of an OMO auction. On a relatively quiet trading day, sentiment in T-bills space was mixed with yields moderating 7bps on average. Whilst yields on the 94DTM (+13bps to 11.64%) and 339DTM (+15bps to 13.40%) bills advanced, yields on the 52DTM (-54bps to 9.73%) and 220DTM (-38bps to 12.10%) bills declined. Trading was similarly quiet in the bond space as yields on benchmark bonds remained flat on average. The most notable yield changes were observed on the 16.00% FGN JUN 2019 – 4bps down to 10.05% – and the 12.50% FGN JAN 2026 bond – up 3bps to 13.08%.

Whilst we expect healthy liquidity to spur some buying in the fixed income market, we foresee investors treading cautiously ahead of Wednesday’s Primary Markey Auction where the CBN will be offering ₦191 billion across the 91DTM, 182DTM and 364DTM bills.