Uncertainty around MPC meeting to dampen market 

21 November 2018 : Market liquidity improved to c.N80 billion at the start of the week. Despite this, the interbank call rate advanced 384bps to close at 10.17%. 

Meanwhile, trading in the fixed income market turned mixed on Monday, albeit with a positive tilt. In the treasury bills space, yields declined 1bp on average amidst both buy and sell interest across the curve. Specifically, whilst yields on the 10DTM bill declined 42bps to settle at 11.03%, the 311DTM bill advanced 30bps to settle at 16.48%. Likewise, trading in the bond space was slightly positive with yields on benchmark bonds declining 4bps on average. Notably, whilst yield on the 12.15% FGN JUL 2034 bond declined 5bps to settle at 15.79%, yield on the 12.50% FGN JAN 2026 advanced 2bps to settle at 15.62%. 

With investors keeping an eye on the bond auction today as well as the MPC meeting (which holds on today and tomorrow), analysts expect activity to remain tepid in the fixed income space. As a result of this, analysts do not foresee significant activity in Wednesday’s trading session. 

Bourse gains 51bps despite weak market activity 

Sustaining gains from the prior session, the ASI opened the week with a 51bps advance, majorly supported by strong gains in the Consumer Goods sector. 

• Notably, the Consumer Goods sector was the best performer on the day, gaining 137bps following upticks in NB (+266bps), NESTLE (+135bps) and DANGSUGAR (+117bps). While the Banking sector inched up 38bps, amid positive activity in ACCESS (+65bps) and ZENITHBANK (+42bps), the Industrial Goods sector closed flat for the day. The Oil & Gas sector was the sole loser, declining 14bps after a loss in FO (-777bps) outweighed gains in TOTAL (+20bps). 

Market breadth was positive with 27 advances and 8 declines. 

Market Outlook 

Analysts expect market to resume trading on a mildly positive note on Wednesday as bargain hunters continue to support buying activity. That said, given the still cautious sentiment in the market, analysts believe gains will remain modest across board. 

Stock Watch: MBENEFIT is currently trading at its year-low of N0.23 after losing 800bps in Monday’s trading session. The stock has lost 54.00% YtD. 

Corporate Disclosures 

The Board of Stanbic IBTC Holdings Plc has notified the Nigerian Stock Exchange and the General Public of the closed period will commence with effect from 01 December 2018 until the release the full year 2018 results. 

The Board of Directors of has announced the change of its 2018 Annual general Meeting to November 21, 2018 as a result of the declaration of Tuesday, November 20, 2018 as public Holiday by the Federal Government.

Reporting for EasyKobo on Wednesday , 21 November 2018 in Lagos, Nigeria

Source: Vetiva Capital Management Limited