Weekly Financial Market update

Transcription

1 Weekly Financial Market update Hope of trend reversal fades! NASDOTC closes 2.7% today December 28, 2018

2 Weekly financial Market Update Weekly Market Summary: The Market breadth closed negative at 0.68x The equities market was highly volatile this week with significant surge and dip in the most listed counters. Even though the local bourse was opened for just three trading days in the week, the performance recorded, however, cannot be forgotten in a hurry as the spike on Monday 3.88% from a benign negative close recorded last week hit the bears rock. Prior to this, investors actually expected a Yelutide rally but not as short-lived as the one experienced this week whereby almost all the gains printed on Monday (N435.90bn) are now being submerged in the red ocean upon consecutive decline in the market on Thursday and Friday at -0.86% and -2.07% respectively. The losses drained N339.44billion from the equities market capitalization. Of important is the fact that NSEASI finished in green 0.86% w/w just as most sectors closed in the positive territory save industrial goods and insurance indexes which declined slightly -0.99% and -0.83% in that order due to depreciation in DANGCEM, NIGERINS, NEM, MANSARD, WAPIC among others while oil and gas sector and consumer goods categories topped the performers as a result of gains in FO, CONOIL and CHAMPION. In the same manner, banking sector ended in the green,week on week upon gains in DIAMONDBNK, FCMB, STANBIC and NPFMCRBK. Daily Commodity Price Watch Previous Current Daily (%) Brent($/PB) Gold Silver Platinum Copper Money Market Rates Rate(%) %Δ Overnight rate Open Buy w-o-w returns chart Gainers %Δ DIAMONDBNK FCMB STANBIC CCNN FO CONOIL NPFMCRFBK UAC-PROP 9.77 CHAMPION 9.70 BERGER 9.55 losers %Δ UACN IKEJAHOTEL NIGERINS NEM MANSARD NCR FBNH ACCESS WAPIC DANGCEM That said, a total of 3.129billion stocks valued N14.347billion were exchanged in 10,389 deals this week compared to 1.47billion shares worth N18.68billion in 15,610 deals last week.

3 Away from that to today s performance, bellwether counters on the premium board were heavily browbeaten today which saw ASI down 654,91 points to 31, as profits were taken in MBENEFIT, FO, TRANSCORP, LEARNAFRCA, CAVERTON, ETERNA and 14 counters which slipped from the previous positive close. Even worse were the sustained selloff pressure in UACN, NEM, FBNH, DANGCEM, ACCESS, and DANGFLOUR. In contrast, positive sentiment lingered in DIAMONDBNK, AIICO, FCMB and CONOIL. In the same vein, Relative strength index (RSI) and Year-to-Date return (YtD) dipped further in the south to and % respectively signaling heavy pressure of the bears on the market performance. Total volume and value surged % and % to end at 1.962billion and N6.545billion just as the deals executed rose 15.91% to 4,080. Review of Sectoral Performance All sectors slipped in the red oceans today as selloff pressure weigh on most counters. As such, consumer goods and oil and gas indexes were the hardest as it shed -3.58% and -4.63% to close at and as a result of depreciation in NESTLE -8.48%, HONYFLOUR -3.76%, DANGFLOUR -0.72%, SEPLAT -7.84%, FO -7.28%, ETERNA -6.0% and OANDO -1.01%. Industrial goods and insurance indexes shed about 1% each to finish at and due to losses in DANGCEM -2.5%, MBENEFIT -9.09%, MANSARD -5.0%, REGALINS -4.76% and NEM On a lighter note, banking sector declined -0.62% as negative sentiment dragged UNITYBNK -9.26%, FBNH -7.93%, ACCESS -2.86%, FIDELITYBK -1.96% and JAIZBANK -1.92% in negative territory. Movement of NSEASI(Year-to-Date) Relative Strength Index (RSI)

4 NSE Market Indices Return Open(points) Close(points) Daily(%) WtD(%) MtD(%) YTD(%) NSE All Share Index NSE Banking Sector Index NSE Industrial Goods Index NSE Consumer Goods Index NSE Oil & Gas Index NSE Insurance Index Source: NSE, MorganCapital Research Market sentiment Investors sentiment was greatly depressed today as its ended with 23 gainers and 34 losers which cemented our position on the intensity of the market volatility. Hence, political uncertainties and the degree of foreign investors withdrawal from the economy will largely determine the market trajectory in the meantime. Top Gainers Top Losers Ticker Close Change %Δ Ticker Price Change %Δ SOVRENINS IKEJAHOTEL DIAMONDBNK LEARNAFRCA UAC-PROP UACN CHAMPION UNITYBNK BERGER MBENEFIT FIRSTALUM NESTLE UPL FBNH WEMABANK SEPLAT STANBIC FO ROYALEX ETERNA Ticker Top Traded Stocks by Volume Top Traded Stocks by Value Deal Volume %Δ Ticker Deal Value %Δ WEMABANK ,277, NEM ,183, NEM ,648, ZENITHBANK ,709, MEDVIEWAIR 3 76,091, WEMABANK ,834, ZENITHBANK ,606, NESTLE ,806, TRANSCORP ,927, GUARANTY ,827, FCMB ,526, DANGCEM ,873, ACCESS ,602, NB ,661, DIAMONDBNK 36 13,447, MEDVIEWAIR 3 152,182, UBA ,010, FO ,489, FIDELITYBK 102 7,956, ACCESS ,122, Source: NSE, MorganCapital Research

5 NASD OTC Performance PARAMETER Previous Current Weekly(%) Daily (%) USI Capitalization ( 'Bn) Volume Traded Value Traded ( '000) Deals Executed NSEASI & Moving Averages (100 and 200-day) Source: NSE, MorganCapital Research Global Market Performance Top Performers 1 day 12/27 1 week 1 month 3 months Index Change Index Change Index Change Index Change Nikkei % Malaysia 2.43% Mexico 4.05% Hungary 8.52% Argentina 3.67% Australia 1.60% Mongolia 3.56% Brazil 6.83% Canada 2.79% Rus 3000 growth 1.23% Indonesia 2.94% Indonesia 4.41% Australia 1.84% United States 1.22% New Zealand 1.16% Philippines 2.21% Taiwan 1.72% Argentina 0.95% Philippines 0.93% Mongolia 0.40% United States 1.14% S&P % S. Africa 0.90% India -1.42% Singapore 1.12% Rus % India 0.83% Abu Dhabi -2.36% Malaysia 1.08% Rus % Poland 0.74% Jordan -3.48% Indonesia 1.02% NASDAQ 0.78% Greece 0.71% Poland -4.08% Vietnam 1.02% Indonesia 0.70% Malaysia 0.34% New Zealand -5.51% Top Decliners 1 day 12/27 1 week 1 month 3 months Index Change Index Change Index Change Index Change Norway -2.63% Israel -5.11% Austria % Rus % Switzerland -2.46% SZ SME -3.23% Israel % Austria % Frankfurt -2.37% Thailand -2.99% Rus % Ireland % Italy -1.71% Shenzhen -2.84% Ireland -9.31% NASDAQ % Sweden -1.69% Norway -2.71% Rus 3000 value -8.79% SZ SME % Denmark -1.61% Italy -2.54% Nikkei % Sweden % S. Africa -1.59% Spain -2.52% UAE Dubai -8.52% Rus 3000 growth % Finland -1.58% Austria -2.51% Netherlands -8.38% Paris % London -1.52% Russia -2.48% Frankfurt -8.20% Norway % Hong Kong -1.43% Sweden -2.43% Czech -8.12% Finland %

6 MorganCapital Securities Limited ("MorganCapital"), formerly known as International Capital Securities Limited, was incorporated on 28th January, 1997; and was issued a license as a Dealing Member of the NSE on 3rd October, 1997, after obtaining license of the Securities & Exchange Commission (SEC) as a Broker/Dealer. The Company has remained a dealing member firm of the NSE since then (over 17years ago). In 2009, MorganCapital got licensed by the SEC to perform an additional role as an Issuing House/Financial Adviser. MorganCapital was recently accredited by the Nigerian Stock Exchange as a Designated Adviser to the Alternative Securities Market (ASeM) Board, after a very rigorous and competitive process. MorganCapital is a full fledge Investment Banking, Securities Trading and Principal Investments Firm, with licenses from the Nigerian Securities & Exchange Commission and the Nigerian Stock Exchange. MorganCapital provides a comprehensive range of investment banking and financial advisory services to private, public sector, corporate, and institutional clients. Our firm has very strong contacts with many African-focused & emerging markets investors/fund managers. MorganCapital has advised on a number of transactions in the Nigerian Capital Markets, including provision of Financial Advisory Service to the Federal Government of Nigeria, through the Bureau of Public Enterprises ("BPE") for the concessioning of the National Arts Theater, the Tafawa Balewa Square, the Lagos Trade fair complex and the 6 National Stadia. MorganCapital also advised the BPE on the proposed sale of the Ijora Power Plant, the Calabar Power Plant and the Oji River coal-fired power plant. Our group is focused on providing unbiased financial advisory and investment banking services to individuals and institutions that are seeking to invest in Africa or already involved in investing in Africa. One of our goals is to be the BEST link to the Nigerian Capital Market. CONTACT US Research Omosuyi Temitope temitopeo@morgancapitalgroup.com Investment Banking Adewale Adetiba adewalea@morgancapitalgroup.com Securities Dealing Ogochukwu Njoku ogochukwun@morgancapitalgroup.com Michael Joel michaelj@morgancapitalgroup.com For further information, please contact: MorganCapital Securities Limited The Pent House 3 Biaduo Street, Off Keffi Street S/West Ikoyi Lagos, Nigeria Tel: 234-(1) , 234-(1) info@morgancapitalgroup.com This report by MorganCapital Securities Ltd is for information purposes only. The company and its employees do not warrant the accuracy or completeness of the information provided as such information was gathered from primary and secondary reliable sources. Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of market trends, which are based on current market sentiment. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The views and strategies described may not be suitable for a ll investors. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The price of equity securities may rise or fall because of changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. We, therefore, do not take responsibility for any loss arising from the use of the information.