Bourse records a 98bp loss to end the week 

26 November 2018 : Trading in the equity market ended on a negative note this week, with the ASI recording a 98bps d/d and 118 bps w/w loss. Though marginal, the Banking sector (d/d: +28bps; w/w:-75bps) emerged as the sole sector gainer on the day, after gains in ETI (d/d: +161bps) and GUARANTY (d/d: +111bps) netted off a decline in ZENITHBANK (d/d: -62bps). Meanwhile, the Industrial Goods sector (d/d: -278bps; w/w:-528bps) extended its losses at week close following major losses in DANGCEM (d/d: -250bps; w/w: -418bps) and WAPCO (d/d: -667bps; w/w: -12.50%). While the Consumer Goods (d/d: -60bps; w/w: -108bps) and Oil & Gas sectors (d/d:-25bps; w/w:+25bps) also closed in the red d/d, both sectors recorded marginal gains w/w supported by earlier gains in the week - FLOURMILL (w/w: +10.00%) and MOBIL (w/w: +10.00%). 

Analysts expect another negative trading session as investor apathy continues to weigh on market activity at week open. 

Stock Watch: ACCESS lost in three out of four sessions this week. The Tier I banking stock lost 199bps d/d to settle at a year low of N7.40. The stock currently trades at a YTD loss of 29.19%. 

Positive sentiment across the fixed income market 

Supported by a net OMO maturity of c.N80 billion on Thursday, system liquidity was mostly healthy through the week (Friday estimate–c.N388 billion), driving a 50bps w/w drop in the Interbank Call rate to 5.83% on Friday. 

Meanwile, trading was mostly positive in the T-bills space this week, with yields declining 10bps w/w (-6bps d/d), supported by decent liquidity. Specifically, yields on the 55DTM and 237DTM bills declined 37bps w/w and 79bps w/w to settle at 12.59% and 14.50% respectively. Despite this, mild selling was observed on some select maturities with the 307DTM advancing 22bps to settle at 16.40%. Likewise, trading in the bond space was positive, with yields on benchmark bonds declining 6bps w/w (2bps d/d). This was largely anticipated as many investors missed out at Wednesday’s bond auction, with allotment lagging subscription by N63 billion. Notably, yields on the 16.39% FGN JAN 2022 and 10.00% FGN JUL 2030 bonds declined 13bps and 10bps to settle at 14.95% and 15.62% respectively. 

Analysts anticipate a quiet start to next week’s trading, with a bit of buying in the bond space. Analysts expect investors who went short in anticipation of a rate hike from the MPC re-enter the bond market to cover their positions. 

The CBN injected $210 million at the Interbank Foreign Exchange on Wednesday. The Naira depreciated N0.69 w/w at the I&E FX Window to settle at N364.01 against the dollar and remained stable at N362.50 w/w in the parallel market. 

Analysts expect the naira to remain stable across the various windows of the currency space as the CBN continues to intervene in the FX market. 

Corporate Disclosures

• The Board of Directors of Cornerstone Insurance Plc has announced the appointment of Mr. Chidiebere Nwokeocha as an Executive Director of the Company. 

• The Board of Directors of Interlinked Technologies Plc has notified the Nigerian Stock Exchange of a proposed change in the shareholding structure of the majority shareholder, Buossole Integrated Limited. 

• The Board of Directors of UAC Nigeria Plc has announced the appointment of Mr. Bolaji Adekunle Odunsi as a Non-Executive Director. 

• The Board of Director of Ikeja Hotel Plc has notified the Nigerian Stock Exchange of the exit of UBA Nominees Ltd as a shareholder of the company, due to the sale of its entire shareholding to OMA Investments Ltd. 

• The Board of Directors of Unity Bank Plc has notified the Nigerian Stock Exchange, shareholders and the general public of the scheduling of its annual general meeting for 17 December 2018. 

• The Board of Directors of Goldling Insurance Plc has notified the Nigerian Stock Exchange of the resignation of its Chairman,, Mohammed Mustapha Bintube effective from 5 November 2018. 

The Board of Directors of 11plc has announced the recommencement of the sale and marketing of aviation jet fuel at the Murtala Mohamed International Airport and General Aviation Terminal in collaboration with Air BP.

Reporting for EasyKobo on Monday , 26 November 2018 in Lagos, Nigeria

Source: Vetiva Capital Management Limited