Financial Market Update   

29 June 2018 ( Lagos )

CBN maintains loose liquidity stance amidst maturity 

In spite of a ?183 billion maturity, the CBN refrained from conducting an OMO auction today. Boosted by this, Interbank Call rate moderated to 14.50% (previous: 48.33%). 

Notwithstanding, momentum in the T-bills space was mixed yet again with a bearish tilt, with yields rising 3bps on average. Notably, whilst yields on the 35DTM (-48bps to 12.80%) and 231DTM (-33bps to 13.39%) bills declined, yields on the 7DTM (+77bps to 13.50%) and 105DTM (+37bps to 12.94%) bills advanced. In contrast, trading in the bond space was largely upbeat, with demand observed on most tenors. Yields on benchmark bonds shrank 8bps on average. Notably, yields on the 15.54% FGN FEB 2020 and 14.50% FGN JUL 2021 bonds declined 104bps and 40bps to settle at 12.34% and 13.30% respectively. 

Barring a mop up at week close, analysts expect the improvement in system liquidity to support demand across the fixed income market. 

ASI closes in the red after mixed sector performances 

Dragged by another mixed session, the Nigerian equity market lost 61bps yesterday, extending losses to three sessions.

Market breadth remained negative with 17 advances and 21 declines. 

Market Outlook 

Analysts expect the underlying weak sentiment to drive trading today and anticipate a tepid trading session. 

Stock Watch

ZENITHBANK has shed 9% over the last eleven sessions. The stock currently trades at a price of N24.90 lower than analyst’s target price of N34.22 and has declined 3% YTD, worse than the Banking sector’s flat YTD performance. 

Corporate Disclosures

The Board of Directors of Stanbic IBTC Holdings Plc, announced the audit of their Half-year Financial Results for the half year ended june 2018, which will be presented to the Central Bank of Nigeria for approva, following which, the financial statements will then be released to the Market no later than 29 August 2018, in compliance with extant rules of filing of accounts. 

The Board of Directors of Cement Company of Northern Nigeria Plc, and Kalambaina Cement Company Limited announced that they have agreed to a merger of their businesses, with CCNN as the resultant entity, subject to required regulatory and shareholders’ approvals. 

The Managing Director of Berger Paints Nigeria Plc, Mr. Peter Folikwe, announced the resignation of the Company Secretary/Legal Adviser, Mrs. Oluseun Oluwole, which will take effect from September 26 2018. A new Company Secretary will be announced in due course. 

The Board of Directors of Capital Oil Plc, announced the holding of an Extraordinary General Meeting of the shareholders, to be held at Dover Hotel, No. 14 Aromire Street, off Allen Avenue, Ikeja, Lagos on July 26 2018 at 10 AM. This is to discuss the sale of six billion unaloted shares to willing and interested investors. 

Source : Analysts at Vetiva Capital Management Limited 

Reporting for EasyKobo on Friday , 29 June 2018 in Lagos, Nigeria

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