Financial Market Update   

Bears hold sway in the T-bills space 

27 June 2018 ( Lagos ) : Despite the absence of a liquidity mop-up by the CBN, Interbank Call rate advanced to 31.57% (previous: 11.33%). 

Sentiment in the T-bills space was markedly bearish, with yields advancing 11bps on average. Specifically, yields on the 37DTM (+42bps to 12.03%) and 191DTM (+67bps to 13.59%) bills advanced. Meanwhile, sentiment in the bond space turned mixed with a positive bias, with demand weighted on shorter tenors. All in, yields moderated 3bps on average across benchmark bonds. Notably, whilst yield on the 16.00% FGN JUN 2019 bond declined 93bps to settle at 12.28%, yield on the 12.50% FGN JAN 2026 bond advanced 12bps to settle at 13.94%. 

Analysts anticipate further mixed trading in the Fixed Income market driven by liquidity constraints. Also, the DMO would be conducting a Primary Market Auction today, offering N60 billion across the 5-yr, 7-yr and 10- yr bonds. 

Flat close amidst mixed trading on the bourse 

Amidst mixed closes across the key sectors, the Nigerian bourse traded sideways, closing flat as the ASI dipped 1bp. 

The Industrial Goods (+89bps) sector was the only gainer yesterday, after a 249bps uptick in WAPCO outweighed losses CCNN (-482bps) and CUTIX (-446bps). On the other hand, the Consumer Goods and Banking sectors shed 29bps each, after declines in INTBREW (-614bps), CHAMPION (-400bps), ZENITHBANK (-173bps) and UBA (-94bps) erased advances in NESTLE (+67bps), NB (+45bps), ACCESS (+197bps) and UBN (+85bps). Rounding off the losers, the Oil & Gas sector dipped 7bps yesterday, following a decline in MOBIL (-55bps). 

Market breadth remained negative with 22 advances and 24 declines. 

Market Outlook 

Although trading pattern was mixed yesterday underlying sentiment remained negative. As such, analysts expect another session of bearish trading today. 

Stock Watch

NEM has gained 27% in the last nine sessions. The stock currently trades at a year high of N3.34 and has returned 101% YTD, compared to the Insurance sector’s 9% YTD return. It is currently the second best performing stock on the exchange. 

Corporate Disclosures

The Board of Directors of Linkage Assurance Plc, has named Daniel Braie Acting Managing Director/Chief Executive Officer of the Company. He takes over from Dr. Pius Apere whose appointment with the Company ended 21st June, 2018. 

The Board of Directors of Dangote Sugar Refinery Plc, at the Board meeting held on 21st June, 2018 appointed Engr. Abdullahi Sule as the substantive Group Managing Director of the Company. 

The Board of Directors of Transnational Corporation of Nigeria Plc has scheduled its meeting to hold on the 13 July, 2018. Consequently, the Company hereby notifies The Nigerian Stock Exchange of its Closed Period which will last from 27 June 2018 to 16 July 2018. 

Corporate Earnings 

PeriodRevenue (?'million)y/y changePAT (?'million)y/y changeTRIPPLEGQ1’1874323%23129%

Source: Analysts at Vetiva Capital Management Limited.

Reporting for EasyKobo on Wednesday, 27 June 2018 in Lagos, Nigeria

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