Source: FT.com
Commentary
- Intra-day on Thursday, the Naira touched an all-time low of N365.25/$, it eventually settled at N308.00/$ at the end of the week.
- Better-than-expected to H1’2016 numbers from GTB & ACCESS
- Brent firms above $50 fuelled by hopes of an output freeze by key producers and data showing robust US demand.
While most stocks didn’t make any big moves in either direction (25 gained, 39 declined and 116 unchanged), renewed offshore demand for large cap names like NB, GTB & WAPCO lifted the market. The market benchmark ended the week at 27,650.32pts, climbing 148bps. At current levels, the YtD decline in the ASI -3.46%. We note the NSE Main Board is much lower, down -8.61%. On the other hand, the NSE Premium Board is +12.09% YtD.
Pacing the advancers were the Consumers, which gained 263bps WoW on gains in UNILEVER, NB & 7UP. The Industrials appreciated 256bps on the back of the gains in WAPCO & DANGCEM. The Banks climbed 214bps; the release of H1’2016 numbers which beat estimates from GTB & ACCESS gave a boost to sentiments. While the Oils skidded by 344bps on weakness in CONOIL & OANDO and the Insurers came off by 119bps on declines in the AIICO & MANSARD
The themes remained the same, investors looking at the FX market particularly for liquidity and local institutional investors reducing already low equity positions in favor of a fixed income play given the elevated yield levels. Consequently, we saw local institutional selling and foreign institutional buying, in mostly prearranged cross trades. Turnover for the week rose to N12.940 from N10.711bn in the previous week. The action was mainly in the shares of GTB (N3.39bn), ZENITH (N2.14bn) & NB (N1.17bn) – the trio accounted for c.52% of total market turnover. We also saw decent volumes in the likes of UBA, ACCESS, FBNH & WAPCO
Market Snapshot
| All-Share Index: | 27,650.32pts |
| Market Cap (NGN): | N9.50tn |
| Market Cap (USD): @308/$ | $30.83bn |
| Total Volumes Traded: | 1.38bn |
| Total Value Traded (NGN): | N12.94bn |
| Daily Average Value Traded – WtD: | N2.59bn |
| Advance/Decline Ratio: | 25/39 |
The Week Ahead
- Release of H1’2016 numbers from UBA
- Closure of register for N0.25 interim dividend from ZENITH
- Custodian and Allied (7kobo), Total (300 kobo) AG Leventis (10kobo) all close their register this week for dividend
- Inflation numbers might be released this week
- We expect to see if the declaration of cease fire by the Niger Delta Avengers will hold sway this week
- Will oil price stay above $50 this week?
