Commentary
- The DMO sold Treasury Bills at elevated yields, 364-day paper priced at 16.46%
- The Naira weakened to the N300 level against the Dollar, settling at N307.98/$
- Inflation surged to 16.5% its highest level since 2005
Seeing declines in all 5-session, Nigerian stocks have again retreated into the negative territory YtD. The market benchmark ended the week at 27,659.44pts, shedding 398bps WoW. Broken into its parts, the Premium Index and Main Board Index were down 579bps and 281bps respectively. At current levels, the All Share Index is down 343bps YtD.
The market has now seen 4 consecutive weeks of declines. The weak sentiments were driven by continued lack of liquidity in the interbank FX market. These coupled with less than impressive earnings, weak earnings expectation and rising fixed income yields. We also saw foreign investors stay on the sidelines, seeking clarity on the CBN’s funding of the one-month forward contracts of $697mn which came due on Friday.
Sector wise, the biggest losses came in from the Banks (-7.28%) on the back of declines in STANBIC (-16.13%) & ETI (-15.41%) which saw both names close at their 52-week low. The Industrials (-7.07%) were also big decliners, driven lower by declines in WAPCO (10.43%; after reporting a loss for the first half of 2016) and DANGCEM (-5.53%). The Oils came off by 0.93%, impacted by OANDO (-25.58%, it had issued a profit warning). On the flip side, the Consumers ended the week higher on gains in the brewers INTBREW (+3.05%) & NB (+2.97%).
The bourse saw a turnover of 1.35bn shares valued at N9.287bn shares, down by more than a third from the 1.149bn shares valued at N13.616bn that traded in the previous week. The bulk of this however came from cross trades by offshore investors in stocks like WAPCO & NB. Names like FBNH, ZENITH, UBA & SKYEBANK were also quite active.
The Week Ahead
- Monetary Policy Committee of the CBN meets from Monday, 25 July to Tuesday, 26 July
- Dividend payment from NAHCO & CONTINUSRE as well as price adjustment in REDSTAREX
- More half year numbers should hit the street given the July 31st filling deadline by NSE
Market Snapshot
All-Share Index: | 27,659.44pts |
Market Cap (NGN): | N9.500tn |
Market Cap (USD): @300/$ | $31.667bn |
Total Volumes Traded: | 1.35bn |
Total Value Traded (NGN): | N9.29bn |
Daily Average Value Traded – WtD: | N1.86bn |
Advance/Decline Ratio: | 15/44 |
Sector Performance:
Risers & Decliners:
- Top Risers:
SKYEBANK (+41.67%; N0.85); FO (+8.11%; N194.90) & PREMBREW (+4.98%; N2.95)
- Top Decliners:
OANDO (-25.58%; N5.12); LIVESTOCK (-17.76%; N0.88) & STANBIC (-16.13%; N13.00)