Yields moderate as buying boosts market 

24 August 2018 : Amidst a N364 billion OMO maturity, the CBN conducted an OMO auction yesterday, offering N400 billion and selling N97.9 billion across the 91DTM and 203DTM tenors at 11.05% and 12.15% respectively. Driven by the net maturity, the interbank call rate declined 200bps to 6.83%. 

Meanwhile, trading remained positive across the T-bills space, with yields declining 6bps on average. Demand was evident across the space, with notable yield moderations on the 42DTM (34bps down to 11.48%) and 175DTM (37bps down to 12.95%). However, trading in the bond space was mixed, albeit with a positive tilt with yields moderating 4bps on average. Furthermore, buying was concentrated on short to mid-dated maturities, with notable yield moderations on the 15.54% FGN FEB 2020 bond (moderated 28bps to settle at 13.90%). 

Analysts expect the net maturity and still-healthy system liquidity to further support demand across the T-bills market. Meanwhile, analysts foresee a quiet day of trading, driven by sustained investor apathy towards longer dated notes. 

Market resumes on a high note as Industrials boost 

Resuming the two-day break in positive territory, the All-Share Index rose 157bps following another wild upward swing from market heavyweight DANGCEM. 

The Industrial Goods sectors saw the most significant gains, climbing 198bps on the back of a strong performance from DANGCEM (+698bps) which outweighed a poor showing from WAPCO (-558bps). The Oil and Gas sector (+20bps) also recorded gains, thanks to solitary mover OANDO (+526bps). Meanwhile, the Banking and Consumer Goods sectors lost 64bps and 39bps respectively, mainly due to ETI (-634bps), UBA (-184bps), FLOURMILL (-465bps) and INTBREW (-341bps) shedding points. 

Market breadth remained negative with 10 advances and 28 declines. 

Market Outlook 

Despite a positive close to trading yesterday, underlying market sentiment remains negative, with intraday trading down for most of the session, thus, analysts foresee a mixed to negative close to the shortened week. 

Stock Watch: FIDELITYBK has announced a closed period on their shares pending the release of the company’s H1’18 results. The stock has posted nine losses in the last eleven sessions closing at N1.58, a ytd loss of 36% (Banking: -11%). 

Corporate Disclosures

The Board of Directors of Ecobank Transnational Incorporated Plc has announced the appointment of Paul-Harry Aithnard as Managing Director Côte d’Ivoire & Regional, Yves Mayilemane as Executive, Human Resources and Josephine Anan-Ankomah as Group Executive, Commercial Banking Group effective immediately. 

The Board of Direcors of Fidelity Bank Plc has notified the Nigerian Stock Exchange of the restriction on trading of its stock from 22 August 2018 pending the release of the company’s audited H1’18 results are released on the floor of the exchange. 

The Boards of Directors of Cornerstone Insurance Plc has announced the holding of its twenty sixth Annual General Meeting which is to hold on 27 September 2018 at Agip Recital Hall, MUSON centre. 

The Board of Directorsof Cornerstone Insurance Plc has announced the resignation of Mr. Ayo Osunbunmi as an executive director of the company effective 27 April 2018. 

Reporting for EasyKobo on Friday ,24 August 2018 in Lagos, Nigeria

Source: Vetiva Capital Management Limited