Nigerian Equity Market
Market insight

The performance of the Nigerian Equity Market remained bearish last week with the index (NSE ASI) trending downward by 1.78% WTD to close at an index level of 29,212.00 and Market capitalisation of N10.98 trillion.

The Market sentiment was mixed, as profit taking was seen on first two trading days while the last 2 trading days witnessed bargain hunting. All sectors closed negative with
the exception of two sectors: Oil/Gas and Insurance Index rose by 0.02% and 1.30% respectively. The industrial Goods Sector recorded the highest decline, down by 4.16% owing to price depreciation in DANGCEM (-3.69%).

This continuous bearish move in the Nigerian Equity Market could be attributed to negative earnings reports released by some companies during the week. DANGCEM’s Q1 profit was
down by 16% YoY.

In the global space, selected markets traded on a mixed note as US market closed in the green following the release of strong job report. US added 263,000 new jobs in April while
the unemployment rate fell to 3.60%, lowest since December 1969. In the week ahead, investors are expected to trade cautiously on the news that Donald Trump vows to hike US.
tariffs on $200 billion worth of Chinese goods this week.

Corporate Disclosures: Forte Oil Plc entered into a share sale and purchase agreement with Calvados Global Services Limited and Gbonka Oil and Gas Limited as part if the plan to sale its shares in Amperion Power Distribution Company Limited and Forte
Upstream Services Limited respectively.

Transcorp Consortium, which comprises of Transnational Corporation of Nigeria Plc and Transcorp Power Limited as its technical partner, emerged the preferred bidder for AFAM
Genco (This include Afam Poer Plc and Afam Three Fast
Power Limited).

MTN Group appointed former Central Bank governor and current Emir of Kano, Muhammadu Sanusi as Non Executive Director.

Sterling Bank Plc appointed Messrs. Tunde Adeola and Raheem Owodeyi as Executive Directors and Mr. Subbaramaiah Rajapur as a Non-Executive Director in replacement of Mr. Sujit Varma on the Board.

Nigerian Aviation Handling Company Plc (NAHCO AVIANCE) appointed Mrs. Abimbola Adunola Adebakin as Independent Non-Executive Director, Prince Saheed Lasisi as Executive Director, Business Development and Commercial, and Mr. Adeoye Emiloju as Chief Financial Officer.

Money Market Rate Weekly Closing Rate: The money market rate fell significantly last week as the Overnight rate (OVN) and Open Buy Back (OBB) fell to 5.93% and 5.29% from 17.29% and 16.43% respectively. Consequently, the average money market rate fell by 11.25% to settle at 5.61%.

Major inflow for the week included: OMO Maturity of cN62.80bn, FAAC Disbursement of cN350bn while major outflow for the week included: Weekly Wholesale, Invisible and SME FX auction of $210mn.

The system liquidity is estimated at cN250bn at the end of the week. With the expectation of renewed mopping activities this week, we expected the money market rates to inch upward marginally.

The week Ahead: 06 – 10 May 2019: Sunu Assurances Nigeria Plc is set to hold its Annual General Meeting (AGM) at BWC Hotel, Victoria Island, Lagos on Tuesday, 07 May 2019.

The Association of National Accountants of Nigeria is set to visit Nigerian Stock Exchange (NSE) on Tuesday, 07 May 2019.

Wema Bank Plc is set to hold its Annual General Meeting at Lagoon Restaurant, Victoria Island on Wednesday, 08 May 2019.

Unilever Nigeria Plc is set to hold its Annual General Meeting at Grand Banquet hall, Victoria Island, Lagos on Thursday, 09 May 2019.

The National Bureau of Statistics (NBS) is set to release Job Creation and Labor Force Statistics: Unemployment and Underemployment for Q4 2018 and Q1 2019 on Friday, 10 May 2019.


 

Contact Anchoria Asset Management Limited for more information

Email: research@anchoriaam.com

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