Bills and Equity Market Update   

Fixed income market opens the week on a quiet note 

26 March 2019 : As expected, the CBN refrained from conducting an OMO auction at week start. Meanwhile, the Interbank Call rate advanced 818bps to settle at 22.43%. 

Despite a quiet day yesterday, trading in the T-bills market was positive, with mild buy interest observed across all maturities. Overall, yields declined 6bps on average. Notably, the yields on the 80DTM and 318DTM bills declined 38bps and 59bps respectively to settle at 11.59% and 14.28%. Meanwhile, trading remained tepid in the bond space, with flat trading observed on most bonds and average yields on benchmark bonds moderating 1bp. Specifically, the yields on the 13.98% FGN FEB 2028 and 10.00% FGN JUL 2030 bonds declined 8bps and 5bps respectively to at 14.31% and 14.32%. 

Analysts expect another quiet day in the secondary market as investors await the conclusion of the MPC meeting today, where analysts anticipate a HOLD decision. 

Market opens the week with red closes across all sectors 

The Nigerian Bourse resumed its negative performance yesterday, shedding 31bps after all sectors closed in the red. 

The Industrial Goods sector (-164bps) recorded the highest losses after CCNN (-431bps) and DANGCEM (-63bps) dragged the sector. Similarly, the Banking sector (-78bps) declined as losses in ACCESS (-657bps) and ZENITHBANK (-249bps) erased gains in UBN (+292bps) and ETI (+75bps). Finally, the Oil & Gas (-74bps) and Consumer Goods (-20bps) sectors also closed down following poor performances in OANDO (- 345bps) and MOBIL (-176bps). 

Market breadth remained negative with 12 advances to 19 declines. 

Market Outlook 

Analysts expect a mixed trading session in the equity market today with a negative tilt as continued sell-offs out-weigh mild buy interest on select stocks. 

Corporate Disclosures 

The Board of Directors of Access Bank have announced the appointment of Mrs Chizoma Okoli as Executive Director, Business Banking Division. Prior to this, she served as an Executive Director in Diamond Bank. 

The Board of Directors of Meyer Plc have announced a meeting on 19 March, 2019 where it approved its 2018 Audited Financial Statements, amongst other matters and consequent submission to the Nigerian Stock Exchange on or before 31 March, 2019.

Reporting for EasyKobo on Tuesday , 26 March 2019 in Lagos, Nigeria

Source: Vetiva Capital Management Limited

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