Weekly Market Wrap - 21 April 2017
NSE ASI extends slide, down 126bps w/w
Losses deepened on the Nigerian bourse at week close with the NSE ASI down 37bps, stretching w/w decline to 1.26% amidst sustained mixed market sentiment. Having seen a number of Q1’17 earnings this week, we expect to see some investor positioning in the coming week as the first quarter earnings season opens further. Overall, we foresee continued mixed trading on the bourse at week open.
Stock Watch: STANBIC rose 497bps today, stretching gains in a six-session rally to 12%. The stock now trades at a 52-week high of ₦20.74 and has returned 36% ytd.
Market trades mixed amidst PMA
Amidst constrained system liquidity, the fixed income market opened the week with trading relatively muted. Following a spate of maturities in midweek, secondary market activity turned more active. Supported by the improved system liquidity and a further 5-year bond (₦480 billion) maturing next week, we foresee stronger buying interest in the fixed income market next week.
The CBN sustained its persistent interventions in the currency market, conducting an array of spot and currency forward sales through the week. Also, the CBN announced a special window for sale of currency to investors and exporters in order to meet eligible FX obligations. We expect the sustained interventions to further improve liquidity in the FX market and foresee further strengthening of the naira in the parallel market.
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