Weekly Financial Market update

Transcription

1 Weekly Financial Market update VOLATILE FEBRUARY ENDs! as investors snap up bellwether counters today Unlisted Securities ends the week in green by 1.91% March 1, 2019

2 Weekly financial Market Update Weekly Market Summary: The Market breadth closed flat at 1.0x Obviously, investors will not forget the equities market performance of February 2019 in a hurry even after the long-awaited bullish trends surface and extend sustainably. However, MorganCapital research evaluated the degree of volatility this week compared to last week and this month using standard deviation and coefficient of variation as presented in the figure below. We observed that NSEASI volatility for this week(415pts) was higher than its values in three trading weeks in the month at 387pts,347pts and 169pts in the first, second and third week of February respectively. Similarly, index volatility in the same month at 726 was higher than 383 and 357 it printed at in Dec 18 and Jan 19 respectively due to the systematic risk(political uncertainties) which weighed heavily on investors sentiment thereby resulting to pervasive bearish sentiments and cautious trading strategy. 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 CORNERST LIVESTOCK CILEASING 9.98 NEIMETH 9.84 PZ 8.91 MBENEFIT 8.00 CUTIX 7.89 MANSARD 7.32 AFRIPRUD 6.82 NASCON 5.21 losers %Δ TRANSCORP NPFMCRFBK OANDO UNILEVER GOLDINSURE WEMABANK ETERNA JAPAULOIL ACCESS FBNH -7.19

3 Away from that, the market resumed the week in trepidation of the likely aftermath of Nigeria presidential election results which was finally announced on Tuesday, but took significant negative toll on the equities market the preceding day after which the sell pressure dissipated today as the benchmark index ended slightly in the green territory at 0.34%, although dipped -2.2% w/w. Meanwhile, some investors took advantage of the jittery to buy the dip which supported the total volume and value of stocks trade uptrend by 18.27%w/w and 11.53%w/w to 1.75billion and N19.68billion as the deals executed also rose 9.17% to 22,314. As we have noted earlier, the bourse ended bullish while the equities market capitalization gained N40.47billion to end the session at N11.87trillion. Dissimilarly, the volume and value of stocks traded today shed % and % to close the week at million and N3.75billion in that order. The Relative Strength Index(RSI) inched slightly in the north at from while the YTD return moved uptrend to 1.26%. Review of Sectoral Performance Most sectors ended the trading day northward howbeit marginally as against the decline in insurance index by -0.44% to end at due to the sell pressure in GOLDINSURE -8.33%, WAPIC -6.98%, LASACO -6.06% and SOVRENINS -4.17%. To the advanced sectors, banking sector and oil/gas indexes topped the chart after gaining 0.40% and 0.30% respectively as a result of price appreciation in FIDELITYBK 6.82%, WEMABANK 4.05%, ACCESS 3.51%, FCMB 2.46%, TOTAL 5.26% and JAPAULOIL 4.55%. On a lighter vein, industrial and consumer goods indexes rose 0.26% and 0.08% to end at 1, and upon buying interest in DANGCEM 0.67%, HONYFLOUR 3.05%, NESTLE 2.72% and NB 0.63%. 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 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 Market sentiment As investors sentiment improved today after inching uptrends from the previous significant weak postures, we expect buying interest to linger next week however supported by the +financial results of the fundamentally sound companies and the waning political uncertainties. Best Performed stocks Least Performed stocks Ticker Close Change %Δ Ticker Price Change %Δ CILEASING NPFMCRFBK CORNERST JAIZBANK FIDELITYBK DANGFLOUR UCAP GOLDINSURE TOTAL ROYALEX JAPAULOIL WAPIC WEMABANK LASACO ACCESS UNILEVER HONYFLOUR INTBREW NESTLE CHAMPION Top Traded Stocks by Volume Top Traded Stocks by Value Ticker Deal Volume %Δ Ticker Deal Value %Δ ZENITHBANK ,507, ZENITHBANK 665 1,546,072, DIAMONDBNK ,265, GUARANTY ,234, TRANSCORP ,393, DANGCEM ,632, ACCESS ,885, ACCESS ,741, FIDELITYBK ,574, NB ,948, FCMB ,457, UBA ,668, UBA ,418, NESTLE ,240, GUARANTY ,877, DIAMONDBNK ,094, FBNH ,796, FBNH ,635, UAC-PROP 18 10,077, SEPLAT 64 58,020, 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 Chinext 8.72% Argentina -3.81% Shanghai 6.87% Philippines -2.85% Shenzhen 6.87% Vietnam -2.24% SZ SME 6.14% Egypt -2.08% Italy 2.21% Singapore -1.99% Turkey 1.99% Mongolia -1.99% Czech 1.21% Mexico -1.73% NASDAQ 0.98% Korea -1.49% Spain 0.94% Indonesia -1.44% Paris 0.85% Brazil -1.39%

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 Dipo Olomofe dipoo@morgancapitalgroup.com Adewale Adetiba adewalea@morgancapitalgroup.com Securities Dealing Esther Adelaja esthera@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.