The performance of the Nigerian Equity Market returned bearish last week, with the index (NSE ASI) down by 1.15% WTD to close at an index level of 29,740.41 and market capitalisation of N11.18 trillion.
Profit Taking gave rise to negative sentiment: The Market sentiment was negative, driven mainly by profit taking seen on 3 out of 4 market sessions during the week. All sectors closed negative, with the exception of Oil/Gas index which rose by The Consumer Goods Sector 0.43%. The consumer goods sector recorded the highest decline, down by owing to price 2.58% depreciation in GUINNESS()and INTBREW (-19.00%-13.04%).
Dangote Flour was the most traded: During the week, DANGFLOUR recorded the highest increase due to the corporate news regarding the acquisition of the company by OLAM International Limited.
In the global space, the selected markets traded on a mixed note as US market closed in the green following the release of an impressive GDP growth of 3.20% in Q1 2019 while the Chinese market witnessed one of the worst performing week since 2016, as the CSI 300 fell by 5.61% as investors priced in expectation of a tight monetary policy, including poor corporate earnings reports.
Top Stock Watch for the week: 29 April-03 May 2019 Over the last five trading sessions:
UBA rose by 3.01% to close at N6.85.
Recommendation: We maintain a buy rating on this stock.
DANGCEM fell by 1.11% to close at N186.90.
Recommendation:We maintain a buy rating on this stock.
ZENITHBNK rose by 2.15% to close at N21.35.
Recommendation: We maintain a buy rating on this stock.
GUARANTY fell by 1.72% to close at N34.20.
Recommendation: We maintain a buy rating on this stock.
Money Market weekly Closing Rate: The money market rate increased last week as the
Overnight rate (OVN) and Open Buy Back (OBB) rose to 17.29% and 16.43% from 10.57% and 9.86% respectively. Consequently, the average money market rate rose by
6.65% to settle at 16.86%. Major outflow for the week included: OMO Sales of cN161.69 bn, Weekly Wholesale, Invisible and SME FX auction of $210mn, Bond auction of cN97.40bn and Biweekly Retail FX auction while Major inflow for the week included: OMO maturity of cN30bn and CBN retail FX auction refund of cN175bn. Barring any significant liquidity mopping action of the CBN, the money market rates are expected to trend lower due to expectation of inflow from FAAC payment and OMO maturity of N62 billion.
Overnight rate (OVN) and Open Buy Back (OBB) rose to 17.29% and 16.43% from 10.57% and 9.86% respectively. Consequently, the average money market rate rose by
6.65% to settle at 16.86%. Major outflow for the week included: OMO Sales of cN161.69 bn, Weekly Wholesale, Invisible and SME FX auction of $210mn, Bond auction of cN97.40bn and Biweekly Retail FX auction while Major inflow for the week included: OMO maturity of cN30bn and CBN retail FX auction refund of cN175bn. Barring any significant liquidity mopping action of the CBN, the money market rates are expected to trend lower due to expectation of inflow from FAAC payment and OMO maturity of N62 billion.
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