Thanks to high cap stocks like FO and Dangote Cement, the equity Market extends the bullish momentum for the 4th consecutive day with critical market indices finishing positive at the end of trading today. The NSE All Share Index and Market Capitalization rose by 2.19%, to close at 24,664.89 points and ₦8.48 trillion respectively. Relative to previous day trading, Market Capitalization added N182 billion.
Similarly, the Year-to-Date (YtD) and the Quarter-to-Date (QtD) returns firmed up to -13.89%, while the Month-to-Date (MtD) and the Week-to-Date returns stands at +3.13% and +4.95% respectively.
NSE Sector Indices: Five out of the six major NSE indices (that we covered) advanced in points, while one of the indices declined today. The NSE index advancers for the day are the NSE Premium (+5.78%), the NSE Oil and Gas (+4.29%), the NSE 30 (+1.75%), the NSE Consumer Goods (+0.23%) and the NSE Banking (+0.09%), while the only NSE index decliner for the day is the NSE Insurance (-1.26%).
The market breadth (gainers/losers) of 0.62x for the day indicates that the number of sellers outpaced the number of buyers in the market. At the end of the day’s trading, 13 stocks advanced while 21 stocks declined; FO (+8.67%), DANGCEM (+6.63%) and IKEJAHOTEL (+3.82%) led the gainers chart while GLAXOSMITH (-5.00%), MANSARD (-4.87%) and PORTPAINT (-4.77%) led the losers chart for the day.
The day’s trading activities by volume was led by WEMABANK (188.556 million), GUARANTY (63.238 million) and ZENITHBANK (30.719 million) while the activity by value was led by GUARANTY (₦1.044 billion), NB (₦0.758 billion) and ZENITHBANK (₦0.385 billion).
Outlook: The market would have recorded a return of -0.08% (ex-DANGCEM), just as the NSE Oil & Gas sector and the NSE Premium stocks elevated the market indices today. The gains recorded by FO and DANGCEM solitarily ensures the market stays positive at the end of the trading session, despite the lower (<1) market breadth recorded. The further decline in the price of crude oil precipitated the losses recorded by most global stock indices today, it also continues to threaten the foreign reserve of the economy just as the Naira value in the forex market depreciates further. The shortage in the supply of dollars has caused scarcity of the greenback in the market, thereby exacerbating the gap between the official and parallel market rate. The effect is that most of the companies exposed to importation of raw materials and offshore financing, will experienced increased operation cost, and this will reflect in the bottom line. Despite all this, investment in fundamentally sound and undervalued stocks remains the antidote to making a decent return in the medium to long term. FIXED INCOME REPORT Treasury Bills Market: The average discount rates in the T-bills market declined by 33bps as it closed at 6.01% against the 6.34% rate recorded in the last trading session. The 1M, 2M, 3M, 6M, 9M and 12M tenor rates closed today at 3.17% (-0.32%), 3.47% (-0.50%), 3.91% (-0.16%), 7.14% (-0.56%), 8.41% (-0.26%) and 9.94% (-0.19%) respectively. In the treasury bills market, yield declined on the short and long end of the yield curve while yield rose on the medium end of the curve. The average market yield declined by 22bps as it closed at 6.10% against the 6.32% yield recorded in the last trading session. At the end of the trading today, the 05-MAY-16, 11-AUG-16 and 02-FEB-17 bills closed at 2.82% (-0.54%), 6.80% (+0.03%) and 8.69% (-0.14%). FGN Bond Market: Investors played more on the medium end of the yield curve as that segment experienced bullish momentum. The average yield in the market declined by 4bps today, as it closed at 11.35% against the 11.39% yield recorded in the last trading session. The result for the 27-APR-2017, 29-JUN-2019, 13-FEB-2020, 27-JAN-2022, 14-MAR-2024, 23-JUL-2030 and 18-JUL-2034 bonds traded are 9.49% (+0.09%), 10.54% (0.00%), 11.72% (-0.18%), 11.76% (-0.14%), 11.86% (-0.04%), 11.98% (-0.02%) and 12.07% (0.00%). Foreign Exchange Market: The Naira traded flat against the dollar today at the inter-bank market (according to FMDQ), as the rate of the Naira to one dollar remains unchanged at ₦199.30/$. At the parallel market, the Naira slipped against the greenback, as it traded at ₦323.00/$ today. Money Market: At the Money Market today, the inter-bank placement rate declined by an average 18bps on the back of increased liquidity in the system. At the end of trading, the Call (O/N), 1M, 3M and 6M rate closed at 0.99% (-1.94%), 8.04% (+0.21%), 9.42% (+0.57%) and 11.02% (+0.45%) respectively. Also, the Money Market Open-Buy-Back (OBB) and the Overnight (O/N) rate declined by an average 208bps to close at 0.58% and 1.00% respectively..