Bills and Equity- what happened yesterday?   

Healthy liquidity spurs T-bills buying 

04 August 2018: Amid buoyant system liquidity of N422 billion, the interbank call rate fell 625bps to 4.42%. 

With the CBN refraining from an OMO auction, the T-bills market was bullish as yields declined 44bps on average, with buying observed across the space. Notably, the 24DTM and 87DTM bills declined 305bps and 307bps to setlle at 9.52% and 10.41% respectively. Meanwhile, the bond space remained bearish with sell offs observed on the longer-dated instruments as yields on benchmark bonds rose 6bps on average. The largest yield advances were observed on the 12.15% FGN JULY 2034 (26bps to 15.43%) and 12.40% FGN MAR 2036 (22bps to 15.24%) bonds. 

Analysts expect healthy market liquidity to continue to support demand for T-bills, barring an intervention from the apex bank today. Meanwhile, analysts foresee further tepid trading in the bond market as investors remain uninterested in the space. 

Market closes flat on first day of September 

Sizable movements in large cap stocks cancelled each other out to draw the market to a flat close – the ASI lost 3bps. 

The Consumer Goods sector was the biggest loser, closing 157bps down as NB (-296bps) and GUINNESS (-526bps) shed points. The Oil and Gas sector (-72bps) also lost ground as dips in FO (-75bps) and OANDO (- 566bps) weighed the sector. Meanwhile, the Banking (+57bps) and Industrial Goods (+51bps) sectors closed positive thanks to gains in ZENITHBANK (+167bps), GUARANTY (+139bps) and DANGCEM (+88bps). 

Market breadth remained negative with 18 advances and 21 declines. 

Market Outlook 

Trading was relatively mixed yesterday, and market breadth narrowed slightly, and analysts anticipate another see-saw pattern in today’s session. 

Stock Watch: DIAMONDBNK has shed 17% of its market value in the last three sessions and has been trending downwards for the past three months, losing 45% since the end of May. The stock trades at N1.51, 23% below its year-high of N3.57 achieved in Mid-January. 

Corporate Disclosures 

The Board of Directors of Global Spectrum Energy Services Plc has notified the Nigerian Stock Exchange and shareholders of the death of Mr. Ibitoye Babatunde, a Non-Executive Director. 

The Board of Direcors of Meyer Plc has notified the Nigerian Stock exchange of the resignation of Mr. Adeola Omosebi as the Managing Director with effect from 25 August 2018. 

The Board of Directors of Fidelitu Bank Plc has notified the Nigerian Stock Exchange of the delay in publishing the company’s audited financial statements for the half-year ended 30 June 2018 due to the still-ongoing audit of the financial statements. 

The Board of Directors Red Star Express Plc has notified the Nigerian Stock Exchange has announced the resolutions of the cpompany’s annual general meeting, held on 30 August 2018. This includes the payment of N0.40 dividend per share to shareholders and appointment of Mr. Suleiman Barau and Mrs. Chioma Sideso as Non-Executive Directors. 

The Board of Directors of Flour Mills of Nigeria Plc has announced the resignation of Mr. Jacques Vauthier as the Chief Finance Officer of the company. Mr. Anders Kristiansson has been identified as his successor. 

Reporting for EasyKobo on Tuesday , 04 August 2018 in Lagos, Nigeria

Source: Vetiva Capital Management Limited

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