New week brings renewed interest in FI market 

18 September 2018 :In spite of the CBN’s pause on conducting Open Market Operations, the Interbank call rate advanced 116bps to 11.83%. 

• Meanwhile, trading was more positive across the Fixed income market yesterday, with investors particularly interested in the T-bills market – yields declined 69bps on average. Specifically, yields on the 31DTM and 38DTM bills declined 213bps and 198bps to settle at 12.21% and 12.19% respectively. Demand was similarly healthy in the bond market, with yields on benchmark bonds declining 10bps on average. Notably, yields on the 15.54% FGN FEB 2020 and 12.40% FGN MAR 2036 bonds declined 40bps and 15bps respectively to close at 14.81% and 15.33%. 

• Analysts expect to see further demand in the T-bills market as investors remain wary of taking positions on longer tenors. Meanwhile, pending the release of the Q4’18 bond calendar, analysts expect tepid trading in the bond market. 

ASI off to a sluggish start as bears return 

• The equity market closed the first session of the week in the red, losing 39bps as Friday’s brief respite was overturned. 

• The Consumer Goods sectors led the way, shedding 81bps after heavyweights NB and NESTLE lost 54bps and 146bps respectively. Meanwhile, the Banking sector dipped 55bps no thanks to recent serial losers GUARANTY (-230bps) and UBA (-270bps). On the other hand, the Oil and Gas sector inched up by 33bps following a strong showing from FO (+857bps). Finally, the Industrial Goods sector closed flat on a quiet day for the index. 

• Market breadth remained negative with 18 advances and 24 declines. 

Market Outlook 

With the market returning to negative territory amid a short-lived recovery, analysts foresee another red close for the bourse in today’s session, even as the risk-off sentiment perists. 

Stock Watch: Following a 148bps decline in yesterday’s session, UACN closed at N10.00, its lowest price since 2005. The conglomerate has shed 41% of its value since the start of the year and with a target price of N20.86, the stock is rated a HOLD as analysts await green shoots from the company’s ongoing restructuring. 

Corporate Disclosures

The Board of Directors of R.T. Briscoe Nigeria Plc has notified the Nigerian Stock exchange and the general public that the audited financial statements of the company for the year ended 31 December 2017 including the unaudited accounts for the first and second quarters of 2018 have been file with the Exchange. The delay in the filing of these financial statements were due to the finalization of the audit of the 2017 year-end accounts with their external auditors and the subsequent referall of the accounts to the Financial Reporting Council of Nigeria for review. 

The Board of Directors of Lasaco Assurance Plc has given notice to the general public of an Extra-Ordinary General Meeting to be held at NECA House on Wdnesday 10 October 2018. 

The Board of Directors of R.T. Briscoe Nigeria Plc has informed the Nigeria Stock Exchange and the general public of the appointments of Mr Olorunfemi A. Eguaikhide and Mr Jubril Adetokunbo Shittu as Chief Operating Officer and Acting Chief Financial Officer respectively. 

Reporting for EasyKobo on Monday , 17 September 2018 in Lagos, Nigeria

Source: Vetiva Capital Management Limited