Healthy liquidity spurs buy-side trading in FI market 

29 August 2018 : With market liquidity atN213 billion, the Interbank call rate declined 291bps to settle at 9.92%. 

Investors continued to concentrate buying on short-term investments, with yields in the T-bills market declining 17bps on average. Once again, the shorter dated maturities were the target, with notable declines in the 23DTM and 30DTM bills (-42bps and -57bps to 9.06% and 9.85% respectively). Trading in the bond market also turned upbeat, with benchmark bond yields declining 8bps on average. Demand was recorded across most maturities in the space, with yields on the 12.50% FGN JAN 2026 and 12.49% FGN MAY 2029 bonds declining 14bps and 11bps to settle at 14.81% and 14.85% respectively. 

The CBN is holding a T-bills PMA today, whereN207 billion will be offered across the 91, 182 and 364DTM bills. With stop rates expected to close on par with previous auctions, analysts expect muted activity in the secondary T-bills space. Analysts also expect reduced demand at the short end of the curve in the bond space, as investors remain cautious. 

Gains persist on Nigerian Bourse as Banks rebound 

The Nigerian equity market remained in positive territory, with the ASI gaining 58bps driven by strong performances from blue-chips in the Banking sector as well as sustained gains across all other key sectors. 

The Banking sector (+167bps) was the biggest gainer on the day, thanks to gains in ZENITHBANK (+91bps), GUARANTY (+263bps), UBA (+245bps) and ACCESS (+276bps). Meanwhile, the Consumer Goods (+32bps) and Oil and Gas (+67bps) sectors also closed in the green, on the back of positive trading in PZ (+728bps), HONYFLOUR (+724bps), TOTAL (+497bps) and OANDO (+196bps). Meanwhile, the Industrial Goods sector closed flat, inching up 2bps. 

Market breadth remained positive with 33 advances and 16 declines. 

Market Outlook 

Bargain hunters are expected to support another positive session on the exchange at week open, with closing positions in the market indicating sustained healthy demand levels for beaten down blue-chips. 

Stock Watch: DIAMONDBNK has witnessed positive trading in recent sessions. After hitting a year-low ofN1.09, the stock has rallied 18% in the past five sessions, closing atN1.30 in yesterday’s session. The stock is still 64% below it’s year-high price ofN3.57 and has lost 13% so far for the year. 

Corporate Disclosures 

The Board of Directors of Standard Alliance Insurance Plc has informed shareholders that the company has filed its Audited Financial Statements for the year ended 31 December 2017, Q1 and Q2 2018 interim accounts with the Exchange. The delay in filing these accounts was due to the delay in obtaining approval of the AFS from the National Insurance Commission (NAICOM). 

The Board of Direcors of Zenith Bank Nigeria Plc has informed stakeholders that the Group Managing Director/CEO, Mr Peter Amangbo was invited by the Economic and Financial Crimes Commission regarding the bank’s business relationship with the Rivers State Government. The bank honoured the invitation, during which the GMD clarified the areas of concerns with the Commission 

Reporting for EasyKobo on Wednesday ,29 August 2018 in Lagos, Nigeria

Source: Vetiva Capital Management Limited