Weekly Financial Market update

Transcription

1 Weekly Financial Market update Roller-coaster week! Thanks to DANGCEM NASDOTC finishes in green w/w at 1.06% January 18, 2018

2 Weekly financial Market Update Weekly Market Summary: The Market breadth closed negative at 0.95x The bullish party which began last week Friday has won the contest against the 6-day losing streaks printed before the positive turn last week Friday after which the bourse recorded 7 days of consecutive gains. Morgancapital research however observed that the industrial sector remained the lone gainer Week-to-Date(WtD), Month-to-Date(YtD) and Year-to-Date(YtD) at significant rates of 8.75% and 12.75% while other sectors were largely in the red ocean, even worse than the return on the benchmark index. The industrial sector surged w/w on the back of unfettered buying interest in CCNN and DANGCEM which gained 25.50% and % w/w respectively. Consumer goods and insurance sector also advanced in the week by 2.72% and 5.53% due to bullish sentiments around NEM, SOVRENINS, REGALINS among others while oil and gas index inched up slightly by 0.59%. Banking sector ended as the only loser among the 5 sectors under review as a result of negative sentiment in most of its bellwether counters. Going forward, a total volume of 1.270billion shares worth N13.46billion were traded in 16,468 deals as against 1.265billion units of shares valued N14.07billion exchanged in 19,275 deals last week representing 0.38%, -4.35% and % changes in the indicators apiece. 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 NEM SOVRENINS ROYALEX CCNN CUSTODIAN UBN DANGCEM REGALINS UNITYBNK 9.64 IKEJAHOTEL 9.35 losers %Δ RESORTSAL BETAGLAS LINKASSURE BERGER LIVESTOCK NNFM LAWUNION WAPIC CORNERST NPFMCRFBK That said, NSEASI recorded the highest daily return today as it rose 1.38% to end the session at 31, while the equities market cap gained N157.35billion to N11.562trillion upon

3 sustained buying interest in NEM, SOVRENINS, NEIMETH, ROYALEX, ETI, MOBIL, DANGCEM, NB and DANGFLOUR in contrast to sell pressures which continued in NAHCO, ZENITHBANK, FCMB, ACCESS and GUARANTY. Furthermore, profit taking weighed on the share prices of JAIZBANK, UNIONDAC, FO, TRANSCORP, AIICO and UBA. The bullish run helped the Relative Strength Index to close uptrend at from 49.46, just as the Year-to-Date(YtD) performance increased momentum uptrend by 130 basis points to -1.35%. However, the total volume and value of stocks traded rose 30.21% and 15.46% to million and N3.764billion respectively which were exchanged in 3,317 deals. Review of Sectoral Performance Most sectors ended in the green territory today save for banking sector which shed -0.37% as a result of price depreciation in JAIZBANK -7.41%, FCMB -3.3%, UBA -2.67%, ACCESS -2.61% and GUARANTY -1.39%. Industrial goods retained the spotlight on the positive sectors chart as it surged 4.21% today to close at 1, upon the significant gains in CCNN 9.13%, DANGCEM 2.58% and WAPCO 1.99%. Consumer goods and insurance indexes trailed by 2.03% and 1.12% to finish at and respectively due to positive sentiments in NESTLE 3.49%, NB 2.86%,DANGFLOUR 1.55%, REGALINS 10.0%, NEM 9.73% and SOVRENINS 8.33%. Oil and gas index however rose marginally by 0.09% to on the back of upticks in OANDO 1.14% and ETERNA 1.14%. Movement of NSEASI(Year-to-Date) Relative Strength Index (RSI) Source: MorganCapital Research

4 NSE Market Indices Return Open(points) Close(points) Daily(%) WtD(%) MtD(%) YTD(%) NSE All Share Index 30, , NSE Banking Sector Index NSE Industrial Goods Index 1, , NSE Consumer Goods Index NSE Oil & Gas Index NSE Insurance Index Source: NSE, MorganCapital Research Market sentiment Investors sentiment declined today, even though the market closed in the positive territory as its recorded 21 counters in the green as against 22 losers. We however advised investors to trade cautiously so as not to be caught in bull trap. Best Performed stocks Least Performed stocks Ticker Close Change %Δ Ticker Price Change %Δ REGALINS BERGER NEIMETH LIVESTOCK UBN BETAGLAS NEM JAIZBANK UNITYBNK RESORTSAL CUSTODIAN UNIONDAC CCNN LAWUNION SOVRENINS LINKASSURE AGLEVENT WAPIC ROYALEX UCAP Top Traded Stocks by Volume Top Traded Stocks by Value Deal Volume %Δ Ticker Deal Value %Δ DIAMONDBNK ,177, GUARANTY 363 1,488,552, ZENITHBANK ,699, ZENITHBANK 374 1,063,759, GUARANTY ,258, UNILEVER ,831, ACCESS ,869, NESTLE ,561, FIDELITYBK 87 15,543, DIAMONDBNK ,913, SOVRENINS 52 11,804, DANGCEM 54 91,497, FBNH ,786, ACCESS ,154, UBA ,478, FBNH ,471, WAPIC 47 6,566, UBA ,385, FCMB 64 6,128, ETI 42 72,856, 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 Top Performers Global Market Performance in One week Top Decliners Index Δ Index Δ Turkey 6.16% London -1.55% Korea 2.12% Mongolia -1.27% Canada 2.06% UAE Dubai -1.13% Portugal 1.95% Philippines -0.73% New Zealand 1.78% Ireland -0.66% Rus 3000 value 1.66% Chinext -0.60% Brazil 1.65% Thailand -0.46% Rus % Denmark -0.41% Rus % Jordan -0.38% United States 1.53% Egypt -0.33%

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.