Daily Equities Market update

Transcription

1 Daily Equities Market update What goes up! NASDUSI closes in the red -0.54% January 21, 2018

2 Headline ZENITHBANK notifies on its Board approval of FY 2018 results Guinness allays fear over the fire outbreak at its ABA logistics center, however, no major loss was recorded. Goldlink Insurance announces changes to its Board Market Summary Index back to its stationary path after last week bullish run The bears resumed session today after a 7-day of bullish trend thereby reaching its peak last week Friday at 1.38%. We understand that a consistent gains in the equities market especially when traceable to few bellwether counters rather than positive sentiment around most listed stocks on the exchange signals positive trend that is about to hit the snag after which oscillation trend takes its course. Apparently, the waned market breadth between last week Wednesday and Thursday, followed by a negative sentiments on Friday signaled the turn on the NSEASI curve recorded today. Money Market Rates Rate(%) %Δ Overnight rate Open Buy Daily Commodity Price Watch Previous Current Daily (%) Brent($/PB) Gold Silver Platinum Copper NASD OTC Indicators PARAMETER Previous Current Daily (%) USI Capitalization ( 'Bn) Volume Traded Value Traded ( '000) Deals Executed That said, investors took profits in a number of last week top performing stocks; UNITYBNK, CUSTODIAN, SOVRENINS, DANGCEM, WAPCO, WEMABANK and ETERNA thereby pushing their prices significantly in the dip in contrast to sustained sell-offs in RESORTAL, UCAP, TRANSCORP and ZENITHBANK. Leading the Global Investment Path to Africa

3 On the flip side, LIVESTOCK, JAIZBANK, LINKASSURE, WAPIC and UBA enjoyed positive sentiments from the previous negative returns as investors hunted for bargains in these stocks. Meanwhile, positive headline factors have remained the major driver of NEM and CCNN as its continued in positive territory in similar vein to the continuous buying interest FIDELITYBNK and STERLNBANK. Also, the benchmark index shed 88 basis points to close today session at 30, just as the equities market cap. lost N billion to end at N11.46trilliion. Furthermore, the total volume and value of stocks traded advanced significantly by 65.96% and 46.92% to million and N5.531billion respectively while the deals executed added 557 to 3,874. Upon the negative turn, RSI tracked the trend to finish at from while the YtD return which would have crossed the redline uptrend had the market ended northward dipped in the red by 87 basis points to -2.22%. Review of Sectoral Performance Banking sector, consumer goods and oil and gas sector closely tracked the market downturn by -0.14%, -0.00% and -4.55% to , and apiece. Oil and gas sector, being the most volatile sector given the prevailing event in international oil market was the hardest hit by the sell pressures in SEPLAT -7.99%, MOBIL-4.62%, ETERNA -2.25% and OANDO -1.12%. Consumer goods and banking sector declined marginally upon losses recorded in the counters of UNITYBNK -4.4%, WEMABANK -1.61%, DIAMONDBNK -0.95% and VITAFAOM -2.22%. Away from that, Industrial goods and insurance indexes ended in the positive territory on the back of buying interest in CCNN 7.17%, LINKASSURE 8.93%, WAPIC 5.0% and NEM 4.84%. Movement of NSEASI(Year-to-Date) Source: MorganCapital Research Leading the Global Investment Path to Africa

4 NSE Market Indices Return Open(points) Close(points) Daily(%) WtD(%) MtD(%) YTD(%) NSE All Share Index 31, , NSE Banking Sector Index NSE Industrial Goods Index 1, , NSE Consumer Goods Index NSE Oil & Gas Index NSE Insurance Index Source: NSE, MorganCapital Research Investors Sentiment: The Market breadth closed positive at 0.78x Investors sentiment waned further today as more counters were being browbeaten due to profit taking and stop loss position on some bellwether counters. However, fundamentally sound stocks will continue to weather the storm of market jittery and heightened speculative trading. Source: MorganCapital I trade the Global Investment Path to Africa

5 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.