The performance of the Nigerian Equity Market returned bullish last week with the index (NSE ASI) up by 0.31% WTD, to close at an index level of 31,924.51 and Market capitalization of N11.905 trillion.
However, the sectoral performance was negative as bearish sentiments were witnessed in all sectors with the exception of Banking sector which rose by 3.37%. The Oil & Gas sector
recorded the highest decline, with the its Index down by 2.56% owing to price depreciation in JAPAULOIL (-8.70%) and SEPLAT (-3.57%).
Despite the release of impressive audited financial reports for FY 2018 by some companies, the market traded on a mixed note as some investors remained quiet while some took
advantage of the undervalued stocks and dividend paying stocks ahead of dividend announcement.
In the global space, most selected markets finished the week in the red as both NASDAQ and CSI 300 fell by 2.46%. Investors confidence continues to decrease due to delay in the conclusion of the U.S.A and China trade deal. China and USA are still in discussions to achieve a trade deal that matches the interests of both sides.
Money market rate closing weekly rate
The money market rate decreased significantly last week as the Overnight rate (OVN) and Open Buy Back (OBB) fell to 10.08% and 9.17% respectively. Consequently, the average
money market rate fell by 7.25% to settle at 9.63% due to the increase in the system liquidity to cN157bn from cN95bn in the previous week. Major inflow for the week included: OMO Maturity of cN228.9bn, FAAC payment of cN350bn, Paris Club refund and I&E FX Purchases by the CBN while Major Outflow include Weekly Wholesale, Invisible and SME FX
auction of $210mn, and OMO Sale of cN1.08trn.
We expect the rate to close higher this week barring any significant inflow due to the following reasons: CBN FX auctions on Monday, anticipated OMO auctions, T-bills Primary Market Auction and Biweekly retail FX auction during the week.
The week ahead: Narch 11- 15
The Nigerian Bar Association is set to hold its Monthly General Meeting at the Foyer of Lagos High Court, Igbosere, Lagos, on Monday, 11 March 2019.
The National Bureau of Statistics is set to release the State Dis-aggregated Mining and Quarrying Data (2018), on Monday, 11 March 2019.
The Institute of Chartered Accountants of Nigeria is set to hold the 6th UK Zonal Annual Conference & Gala Night at Western Gateway, Royal Victoria Dock London, on
Thursday, 14 March 2019.
The National Bureau of Statistics is set to release the Prison Statistics 2018, on Thursday, 14 March 2019. The National Bureau of Statistics is set to release the CPI
and Inflation Report February 2019, on Friday, 15 March 2019.
Top Stock Watch for the week: 11 – 15 March 2019
Over the last five trading sessions:
UBA rose by 0.66% to close at N7.65. Recommendation:
We maintain a buy rating on this stock.
SEPLAT fell by 3.57% to close at N596.90.
Recommendation: We maintain a hold rating on this stock.
ZENITHBNK rose by 4.18% to close at N24.95.
Recommendation: We maintain a buy rating on this stock.
GUARANTY rose by 5.07% to close at N37.30.
Recommendation: We maintain a buy rating on this stock.
Contact Anchoria Asset Management Limited for more information
Email: research@anchoriaam.com
www.anchoriaam.com
