Sentiment turns mixed across bills and bonds 

15 August 2018 : The Interbank call rate declined 137bps to 10.38% amid healthy system liquidity (N191 billion) and in the absence of a liquidity mop-up by the CBN. 

Trading in the T-bills space turned mixed yesterday as T-bill yields closed flat on average. Notably, yields trended in opposite directions as though yield on the 79DTM bill (+52bps to 11.99%) advanced, yield on the 23DTM bill (-40bps to 10.41% ) declined. Sentiment in the bond space was likewise mixed albeit with a bearish tilt. Healthy demand was observed on the short-dated bonds, with yield on the 15.54% FGN FEB 2020 bond moderating 14bps to 13.72%, but sell pressure dominated the long-end as yields on the 13.98% FGN FEB 2028 and 12.1493% FGN JUL 2034 bonds rose 20bps and 26bps to settle at 14.68% and 14.72% respectively. 

Analysts expect trading to persist mixed today amid the August Bond PMA; the DMO will be offering N90 billion across the 5-yr, 7-yr and 10-yr bonds. 

Bourse weakens further, downturn in blue-chips persists 

The NSE ASI closed down once again, sliding 35bps on the back of losses in three of the four key sectors. Notably, in spite of the extended slide (eight consecutive sessions), market sentiment shows little signs of improvement as market indicators remain negative. 

Once again, the Banking sector suffered the heaviest losses, falling 106bps as blue chips, ACCESS (-303bps), GUARANTY (-142bps) and UBA (-55bps) all suffered losses. The Oil and Gas (-79bps) and Industrial Goods (-3bps) sectors also recorded losses after declines in ETERNA (-972bps) and BERGER (-943bps) dragged the sectors. However, the Consumer Goods sector saw the only positive close, as INTBREW (+523bps), NASCON (+327bps) and UNILEVER (+76bps) lifted the sector. 

Market breadth remained negative with 14 advances and 33 declines. 

Market Outlook 

Whilst analysts note a slight uptick in trading towards session close, analysts anticipate an extended downtrend as market activity and sentiment remain tepid. 

Stock Watch: SEPLAT recently announced the signing of an MoU with NNPC to deliver 3.4 billion scf of gas per day, a significant development in the company’s natural gas ventures. The stock currently trades at N650.00, below its year-high of N785.00, albeit up 3.8% ytd. 

Corporate Disclosure 

The Board of Directors of Great Nigeria Insurance Plc has notified the Nigerian Stock Exchange that at the 50t Annual General Meeting of Great Nigeria Plc held on Wednesday 25 July 2018, the the appointed Col. Ali Sule Yakasai (Rtd) as an Independent Director of the company.

The Board of Directors of Courtsville Skye Bank Plc has notified the Nigerian Stock Exchange that the bank is yet to file its unaudited financial statements for the period ended 30 June 2018. This is due to the pending approval from the CBN , the Bank’s primary regulator. The statements, along with the audited financial statements for the previous financial years (2016 and 2017) shall be published as soon as the CBN grants its approval. 

Reporting for EasyKobo on Wednesday ,15 August 2018 in Lagos, Nigeria

Source: Vetiva Capital Management Limited