Fixed Income
10 July 2018 ( Lagos ) : The Interbank Call rate advanced 950bps to 20.83%, despite healthy system liquidity (N 370 billion) in the absence of any CBN liquidity mop-up.
Sentiment in the T-bills space remained bullish, with yields declining 18bps on average. Notably, yields on the 45DTM (-51bps to 11.43%), 66DTM (-98bps to 11.69%) and 136DTM (-63bps to 11.95%) bills declined. Likewise, bulls dominated the bond space, with demand evident across most maturities. Notably, yields on the 16.00% FGN JUN 2019, 15.54% FGN FEB 2020 and 12.40% FGN MAR 2036 bonds moderated 14bps, 35bps and 21bps to settle at 13.11%, 13.08% and 14.13% respectively.
Barring any renewed offshore supply pressure or OMO mop up, we expect the buy sentiment to linger, with activities weighted on T-bills.
ASI inches 7bps higher week open
Coming off a negative trading week, the Nigerian bourse eked out a 7bps gain amid an even split between sector gainers and losers.
Market breadth remained negative with 21 advances and 29 declines.
Market Outlook
Despite the slightly positive close yesterday, investor sentiment is still weak (low value traded) and bearish (negative market breadth). We foresee this negative undertone persisting in today’s session.
Stock Watch
JBERGER has gained 9% over the last six sessions. The stock currently trades at a price of N 30.00 (above our target price of N 25.27) and has returned 7% YTD.
Corporate Disclosures
• The Board of Directors of Staco Insurance Plc has notified shareholders and the public that the company was unable to file its 2017 audited financial statements with the Nigerian stock exchange within the required time frame.
• The Board of Directors of Multiverse Mining and Exploration Plc has notified the Nigerian Stock Exchange of a significant transaction of the company's shares which the company had no prior knowledge of. The transaction was carried out by Heritage Capital Markets Limited, a significant shareholder of the company.
• The Board of Directors of Africa Prudential Plc have notified the Nigerian Stock Exchange, stakeholders and the public that its board is scheduled to meet on 27 July 2018. This is to consider the unaudited financial statements for the period ended 30 June 2018. The board has also given notice of a closed period between 11 July 2018 to 31 July 2018.
• The Board of Directors of Ecobank Transnational Incorporated has announced the departure of its managing director, Mr. Charles Kie, effective immediately. The board will immediately begin the process of choosing a successor.
• The Board of Directors of Transcorp Hotels Plc has announced the scheduling of its meeting to hold on 24 July 2018. The company also notified the Nigerian Stock Exchange of its closed period which lasts from 9 July 2018 to 24 hours after the release of the company's half year financial statements.
• The Board of Directors of Nestle Nigeria Plc has announced the meeting of its board of directors is scheduled to hold on 27 July 2018 to consider the unaudited financial statements for the period ended 30 June 2018. The company also notified the Nigerian Stock Exchange of the closure of its period from 11 July 2018 to 31 July 2018.
• The board of Directors of Berger Paints Nigeria Plc has notified the Nigerian Stock Exchange of the resignation of the company secretary/legal adviser Mrs. Oluseun Oluwole, who has given three months notice of her resignation which will take effect from 26 September 2018.
Reporting for EasyKobo on Tuesday, 10 July 2018 in Lagos, Nigeria
Source: Vetiva Capital Management Limited