Bears prevail in the T-bills space 

08 August 2018 ( Lagos ): The interbank call rate declined 34bps to 7.58% amidst buoyant system liquidity (N289 billion). 

Despite relatively healthy system liquidity, trading in the T-bills space was tilted bearish as yields advanced 13bps on average. Most notably, yields on the 44DTM (+28bps to 10.95%) and 170DTM (+36bps to 12.85%) bills rose on the day. Meanwhile, sentiment in the bond space was mixed, albeit with sell pressure observed on mid-dated tenors, as yields on benchmark bonds closed flat on average for the second consecutive session. Specifically, whilst yield on the 15.54% FGN FEB 2020 bond which declined 41bps to settle at 12.93%, yield on the 16.2884% FGN MAR 2027 bond advanced 19bps to 14.24%. 

Despite tepid trading in the T-bills space, analysts anticipate a more upbeat session on the back of healthy system liqiduitiy. However, trading on bonds is expected to remain muted in today’s session. 

ASI falls loses ground as large caps stumble 

The bourse declined 40bps on the back of losses in blue chip stocks across key sectors. The Consumer Goods was the only key sector to notch a positive close – a reversal from the previous session. 

The Oil and Gas sector was the biggest loser as it fell sharply by 469bps, weighed by a 845bps dip in SEPLAT. Losses also hit the Banking sector (-108bps) as GUARANTY (-212bps), ZENITH (-84bps) and UBA (-103bps) all shed points. The Industrial Goods sector (-93bps) closed under as declines in WAPCO (-197bps) dragged the sector. Finally, the Consumer Goods sector was the sole gainer yesterday, rising 63bps buoyed by uptcks in NB (+208bps) and FLOURMILL (+366bps). 

Market breadth turned positive with 24 advances and 21 declines. 

Market Outlook 

Market sentiment has been relatively weak this week, underscored by low market turnover and pressure on large cap stocks, and analysts anticipate another soft session today. 

Stock Watch: NEIMETH has gained 54% in the past 7 sessions and gained 9.23% in the last session alone. The stock currently trades at N0.71, 5.33% below its year-high of N0.97. 

Corporate Disclosure 

The Board of Directors of Staco Insurance Plc has informed the Nigerian Stock Exchange, shareholders and stakeholders that the company appointed a new company secretary at its meeting held on 30 July 2018. The Board appointed Jackson, Etti & Edu, effective immediately. 

The Board of Directors of UACN Property Development Comany Plc has announced the resignation of its chairman, Mr. Larry Ettah with effect from 23 July, 2018. The board also announced the appointment of new directors, Mr. Babatunde Kasali, Mr. Folasope Aiyesimoju and Mrs Awuneba Ajumogobia to the positions of Chairman of the Board, Chief Executive Officer (CEO) and Non-Executive Director respectively. 

Reporting for EasyKobo on Wednesday ,08 August 2018 in Lagos, Nigeria

Source: Vetiva Capital Management Limited