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The Market Today - 7 April, 2017

Nigerian Senate set to debate oil industry reform bill

An Oil & Gas industry reform bill is set to be debated today in the upper legislative chamber of the National Assembly. The bill, which focuses on governance is one of several proposed legislative reforms to the industry. We recall that President Muhammadu Buhari identified legislative reforms in the oil industry as a priority when he assumed office in 2015 and as a necessary tool to tackle the corruption and mismanagement that has plagued the Nigerian Oil & Gas industry. We highlight that the recently launched Economic Recovery and Growth Plan identifies the passage of the petroleum industry reform bills as a key priority for the sustainable development of Nigeria’s Oil & Gas industry.

ASI gathers momentum as all sectors post gains

The Nigerian bourse posted a sizeable gain (NSE ASI: up 111bps) in yesterday’s session following strong showings across all key sectors on the exchange. Whilst we expect the market to carry over the positive sentiment into today’s session, we foresee likely profit taking across stocks that have recorded heftier gains in recent sessions.

Stock Watch: After gaining 500bps yesterday, HONYFLOUR currently trades at a price of ₦1.05. We highlight that the current price appears to be a resistance level in the last two months – retracing from that level on six different occasions.

Bears gain foothold in fixed income market

The T-bills market jettisoned recent trend as it traded mixed with a bearish bias. Meanwhile, the bond market continued bearish as yields trended further north. With bearish sentiment festering at the end of the week, we anticipate a muted trading session on Friday.