Market caps bearish week in the red 

09 July 2018 ( Lagos ) : Bears returned to the bourse on Friday after a glimmer of hope in Thursday’s session, with the ASI closing 31bps under (-171bps w/w). The Banking sector (+141bps d/d; -7bps w/w) was the only gainer on Friday, buoyed by gains across GUARANTY (+362bps), UBN (+85bps) and ACCESS (+48bps). On the other hand, the Industrial Goods (-97bps d/d; -277bps w/w) and Consumer Goods (-87bps d/d; -349bps w/w) sectors closed in the red, following declines in CCNN (-844bps), DANGCEM (-132bps), DANGSUGAR (-263bps) and NB (+168bps). Likewise, the Oil & Gas sector (-287bps w/w) declined 79bps on the day following a 571bps dip in MOBIL. 

With market sentiment staying negative at week close after a week of bearish trading, analysts expect the tepid sentiment to filter into the market at week open. 

Stock Watch

PRESTIGE has shed 21% over the last ten sessions, including 545bps on Friday. The stock currently trades at a price of N 0.52 and has returned 4% YTD, below the insurance sector’s 9% YTD performance. 

Demand evident amidst buoyant system liquidity 

In the absence of a liquidity mop-up on Friday, sentiment in the T-bills space was bullish – yields moderated 21bps on average. Specifically, yields on the 27DTM (-94bps to 11.98%), 118DTM (-54bps to 12.23%) and 146DTM (-35bps to 12.34%) bills declined. Meanwhile, trading in the bond space remained tepid, with yields on benchmark bonds advancing 3bps on average. Specifically, yields on the 16.00% FGN JUN 2019 bond and 16.39% FGN JAN 2022 bonds rose 17bps and 20bps to settle at 13.25% and 13.80% respectively. Overall, the fixed income market traded mixed this past week, with yields on T-bills declining 59bps w/w on average while benchmark bonds rose 26bps w/w on average. 

Barring any significant OMO mop up this week, analysts expect buy sentiment to persist in the fixed income market, with most of the demand weighted towards the T-bills space. 

FX

The CBN intervened in the FX market, injecting $210 million into various market segments at week open. Amidst this, the Naira depreciated N 1.26 w/w at the I&E FX Window to close at N 362.58 against the dollar but appreciated N 1.00 w/w in the parallel market to settle at N 359.50. 

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. 

Company Disclosures 

• The Board of Directors of Dangote Cement Plc has announced the close of their half year period 30 June 2018. The company gave notice to the directors, senior managers and other interested parties that it has entered a closed trading period from 5 July, 2018 until after the half year unaudited financial results for the period are released to the public. 

• The Board of Directors of Triple Gee & Co. Plc has announced the closure of the register of shareholders of the company, on Friday 24 August, 2018. The company has also announced the date of its next annual general meeting at Adeola Odutola hall, Ikeja, Lagos on Thursday 13 September 2018. 

• The board of Directors of Cornerstone Insurance Plc. has announced the delay in the filing of the company’s audited financial statements for the year ended 31 December 2017. This is due to them being under review by the National Insurance Commission and will be released after NAICOM’s approval. 

• The Board of Directors of Flour Mills of Nigeria Plc has notified shareholders that the annual general meeting of Flour Mills of Nigeria will be held on Thursday 30 August 2018 at Eko Hotel, Victoria Island, Lagos.