Commentary
- Treasury Bills yields rose across the curve
- Average yields in the bond market were higher
- Naira weakened to N290 against the greenback on the interbank and N365 on the parallel market
- Bank of England keeps rate steady, but cuts likely soon
- Japan’s PM lays out plans for fresh $100bn fiscal stimulus
- Brent crude ends the week higher at $49.56
Nigerian stocks were down for the third consecutive week since hitting its 2016 high of 31.071.25pts on the 23rd of June. The All-Share Index came off by 0.17% to close at 28,805.45pts, as the market struggled for direction. At current levels, the ASI remains in the green YtD at +0.57%. However, when broken down, the Premium Index (made up of FBNH, ZENITH & DANGCEM) is higher by 16.97% YtD while the Main Board is down -4.90% YtD.
The Oils (-1.31%) and Insurers (-1.80%) paced the decliners on weakness in OANDO (-14.53%; on profit takings amidst the qualified statement from its auditors with regards to its FY’2015 financials) and MRS (-8.01%; on stories of a wind down of the company by AMCON). The Banks (-0.20%) ended slightly lower, with tier-2 names SKYE (-31.03%) and DIAMOND (-10.45%) weighing on performance. On the other hand, the Industrials (+1.4%) were higher on a recovery in WAPCO (4.63%; on the back of a cross trade almost at limit up on Friday). The Consumers (+0.95%) were also higher, supported by gains in the flour milling companies
The week saw a turnover of 1.149bn shares valued at N13.616bn. The activity was driven by cross trades in the likes of GUARANTY, DANGCEM & WAPCO. Our sense is that participation was largely by foreigners.
Earnings season kicked off mixed, with Investment banking group, UCAP reporting a top line growth of 33% YoY and a bottom line growth of 44% YoY for H1’2016, profitability was buoyed by gain on the sale of its stake in an associated business (United Metropolitan Life). On the other hand, Nigerian Breweries reported top line growth of 3.76% and bottom line decline of 17.56%, profitability being impacted by surging Finance Costs.
The Week Ahead
- Nigeria reports June Inflation on Monday, 18 July
- Market mood would be dictated by the release of Q2’2016 earnings
- The European Central Bank’s Governing Council meets to set interest rates on Thursday, 21 July
| All-Share Index: | 28,805.45pts |
| Market Cap (NGN): | N9.893tn |
| Market Cap (USD): @290/$ | $34.114bn |
| Total Volumes Traded: | 1.15bn |
| Total Value Traded (NGN): | N13.62bn |
| Daily Average Value Traded – WtD: | N2.72bn |
| Advance/Decline Ratio: | 22/38 |
Risers & Decliners:
- HONYFLOUR (+14.79%; N1.63); UCAP (+7.69%; N2.66) & ZENITHBA (+6.02%; N16.38)
- Top Decliners:
SKYEBANK (-31.03%; N0.60); NPFMCRFBK (-21.01%; N0.94) & TRANSEXPR (-18.55%; N1.01)
