ASI mirrors August performance, sheds 597bps m/m
02 October 2018 : Despite there being more negative sessions than positive (3 to 2) the market closed 70bps up thanks to strong trading earlier in the week, this means that the market closed out the quarter 14.40% down its highest quarterly decline since Q4’14. Trading on the bourse closed very marginally in the green at week close amidst an even split between gainers and losers.
Despite a mildly negative close on Friday, the Banking sector (w/w: +247bps) was the only key sector to close in the green for the week following rebounds in GUARANTY (w/w: +533bps) and UBA (w/w: +500bps). Despite recording modest upticks on Friday, the Industrial Goods and Oil & Gas sectors lost 136bps w/w and 73bps w/w respectively as investors sold off WAPCO (w/w: -553bps), FO (-674bps) and TOTAL (-353bps). Meanwhile, the Consumer Goods traded mostly in negative territory, shedding 135bps d/d and 51bps w/w no thanks to selloffs in NESTLE (d/d: -227bps) and PZ (d/d: -233bps; w/w: -704bps).
Analysts anticipate a tepid start to next week’s trading amid a shaky market sentiment and low market turnover indicative of sustained weakness in investor participation.
Stock Watch: UBN fell 12% w/w to settle at N5.10 at week close. After touching a year high of N8.35, the stock has now lost 35% ytd and is one of the poorest performing lower-tier banking stocks on the exchange.
Mixed trading follows Monetary Policy Committee decision
With liquidity remaining healthy at N349 billion to close the week, the interbank call rate advanced 200bps to close at 6%.
• Trading was mixed in the T-bills space as yields closed flat on average on the day (+19bps w/w). Whilst buying was observed on the short-dated bills – the yield on the 41DTM bill moderated 24bps to 12.63%, yields advanced on the longer dated bills, with yield on the 356DTM bill rising 47bps to 15.49%. Meanwhile, trading in the bond space had turned positive following the MPC decision to hold rates on Tuesday and that persisted today with yields down 11bps (-15bps w/w).
Also, the DMO offered N90 billion and sold N97 billion on Wednesday at stop rates slightly below secondary levels. Subsequently, buying continued to be observed in the bond space, notably, yields on the 12.15% FGN JUL 2034, 12.40 FGN MAR 2036 and 16.25% FGN APR 2037 bonds all declined by 25bps w/w to settle at 15.24%, 14.13% and 15.15% respectively.
• Buoyed by healthy system liquidity and greater certainty over monetary policy, analysts expect a slightly positive start to next week’s trading.
• The Naira depreciated N0.24 w/w at the I&E FX Window to settle at N363.92 against the dollar while remaining flat at N359.50 in the parallel market.
• Analysts expect the Naira to remain stable across the various windows of the currency space as the CBN continues to intervene in the FX market.
The Board of Directors of Wema Bank Plc has announced the hiring of Ademola Adebise as the Managing Director/ Chief Executive Officer of the company following the retirement of Segun Oloketuyi. Mr Moruf Oseni has also been named Deputy Managing Director of the Company.
The Board Directors of R.T Briscoe has notified shareholdrs that the annual general meeting of the company will be on 29 November 2018.
The Board of Directors of Livestock Feeds Plc has notified the Nigerian Stock Exchange and shareholders that Ernst & Young Professional Services have been appointed as the new external auditors of the company to replace BDO Professional Services with effect from 23 July 2018.
The Board of Directors of Africa Prudential Plc has notified the Nigerian Stock Exchange that the meeting of the board is scheduled to hold on 18 October 2018 to consider the unaudited financial statements for the period ended 30 September 2018.
Reporting for EasyKobo on Tuesday , 02 Octber 2018 in Lagos, Nigeria
Source: Vetiva Capital Management Limited