Weekly Market Wrap - 13 October 2017
Robust gains for Nigerian equities, ASI gains 1.45% w/w
Gains deepened modestly on the Nigerian bourse at week close with the NSE ASI up 32bps. Despite the bearish performance on Tuesday and Wednesday, sustained bullish performance from Thursday and Friday stretched w/w gains to 145bps. As the third quarter earnings season approaches, we expect increased activity on the Nigerian bourse in the coming week and foresee a mixed trading pattern through the week, albeit with a bullish bias.
Stock Watch: After staying flat for eight consecutive sessions, MANSARD has rallied in the last sessions – up 26% to close at ₦2.51. The stock currently trades close to its year high of ₦2.62 and it has returned 50% ytd.
Buying sentiment dominates FI market at week close
Amidst the liquidity injection of ₦62 billion from Thursday’s OMO maturity, trading remained upbeat in the T-bills market towards week close with yields trending southwards across the space. Though trading sentiment started off on a bearish note, buying sentiment strengthened as the week advanced irrespective of successive OMO auctions conducted by the CBN to constrain liquidity. As such, yields in the T-bills market declined 3bps on average w/w. Meanwhile, sizeable demand was particularly weighted across bond maturities for most of the week amidst strengthened investor participation - yields across the benchmark bonds moderated 35bps w/w settling at an average rate of 14.81%.
The CBN sustained its consistent interventions through the week, carrying out spot and forward currency sales. Consequently, the naira appreciated ₦0.15 and ₦0.21 at the official spot market and I&E FX Window to close at ₦305.50 and ₦360.43 respectively against the dollar. Meanwhile, the naira remained flat at ₦361.50 on the parallel market.
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