Weekly Financial Market update

Transcription

1 Weekly Financial Market update A drop of green in the red ocean! Unlisted Securities index ends in the green April 05, 2019

2 Weekly financial Market Update Weekly Market Summary: The Market breadth closed positive at 1.13x Daily Commodity Price Watch Previous Current Daily (%) The expectation of bullish sentiment to push the laggard counters uptrend this week after the shift on Thursday and Friday last week, hit a snag as the equities market was severally browbeaten even amidst the signaling policy of the monetary authority, and improved 2018 earnings of some defensive counters. In a bid to trace the drags of the market from international front, we observed that increased the likelihood of a truce between the US and China has elevated expectation of stronger economic growth in the two countries as reflected the US Exchange positive performance. To domestic drags, uncertainties around fiscal policy stance to complement the monetary policy push for real sector driven growth is really less aggressive. Away from that, consequent upon the sell pressure this week, investors lost N571.72billion thereby seeing Benchmark index RSI breaking its support line significantly, and waning the predictive power of its moving averages which pointed to a reversal earlier. Thus, on week-onweek basis, consumer goods index was the most depressed as its shed -7.73% due to sell pressure in DANGFLOUR, UNILEVER, NB, INTBREW, CHAMPION, NESTLE, FLOURMILL, HONYFLOUR and DANGSUGAR. In similar manner, Banking sector and Industrial goods indexes were not spared, dropping -6.09%w/w and -6.48%w/w apiece as a result of capital losses in UBA, ETI, ACCESS, WEMABANK, FBHN, UNITYBNK, ZENITHBANK, JAIZBANK and GUARANTY. On a lighter note, Oil/gas and Brent($/PB) Gold Silver Platinum Copper Money Market Rates Rate(%) %Δ Overnight rate Open Buy w-o-w returns chart Gainers %Δ IKEJAHOTEL CHAMS SOVRENINS FIRSTALUM BERGER 9.70 STERLNBANK 8.33 UBN 5.26 CADBURY 5.00 NEM 4.95 CORNERST 4.76 losers %Δ ETERNA UNIONDAC UBA BETAGLAS NEIMETH DANGFLOUR CCNN OANDO ETI GLAXOSMITH

3 Insurance indexes went down -2.34%w/w and -3.86%w/w upon sell-offs in OANDO, MOBIL, MANSARD, LINKASSURE, MBENEFIT, REGALINS, LASACO and NIGERINS. The NSE All Share Index dropped -4.59%w/w to , but ended 0.31% uptrend today after the negative closes recorded in four trading sessions of the week. That said, the total volume and value of stocks exchanged this week advanced 34.81% and 58.8 to 3.54billion and 20.26billion respectively from 2.63billiom and N12.79billion its printed at last week, just as the total deals executed rose 17.33% to finish at 19, from 16, The Relative Strength Index (RSI) curved marginally to from 22.56, however, still below its support while the Year-to-Date(YTD) return also inched up slight to -5.77% from -5.97%. However, activities were mixed as the volume traded shed % to million in contrast to 20.66% increase in its equivalent value to N3.49billion while the deals shed % to 3,575. Review of Sectoral Performance Three sectors had a happy ending today after the bear spell which keep them downtrodden in the week was relaxed. Industrial goods sector rose 1.19%, following gains recorded in FIRSTALUM 10.0% and CCNN 4.94%. Banking sector and Consumer goods index also ended in the positive territory, up by 0.33% and 0.17% on the back of FIDELITYBK 5.85%, FCMB 5.71%, UBN 5.26%, DANGFLOUR 6.88%, CADBURY 5.0% and DANGSUGAR 1.09%. On the flipside, Insurance sector went down by -0.58% to as investors interest in REGALINS -4.35% and MANSARD -1.96% diminished while Oil and gas sector index ended unchanged. 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 29, , 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 sped down south this week save for the turn recorded today. Meanwhile, we expect the bullish sentiment to dominate trading session next week as most fundamentally sound counters are now closer to the their 52-week low prices. Best Performed stocks Least Performed stocks Ticker Close Change %Δ Ticker Price Change %Δ FIRSTALUM ABCTRANS CHAMS MCNICHOLS THOMASWY FIDSON DANGFLOUR NEIMETH AFRIPRUD LIVESTOCK FIDELITYBK LEARNAFRCA FCMB UNITYBNK UBN GLAXOSMITH CADBURY REGALINS CCNN UACN Top Traded Stocks by Volume Top Traded Stocks by Value Ticker Deal Volume %Δ Ticker Deal Value %Δ STERLNBANK 81 59,866, GUARANTY 318 1,320,912, CHAMS 53 56,013, ZENITHBANK ,420, FBNH ,497, FBNH ,233, GUARANTY ,748, ACCESS ,264, ACCESS ,560, ETI ,183, ZENITHBANK ,004, STERLNBANK ,860, UBA ,625, UBA ,746, FCMB ,867, MOBIL 19 59,941, ETI 38 16,228, ETERNA 37 40,918, ETERNA 37 10,226, FLOURMILL 40 40,739, Source: NSE, MorganCapital Research

5 NASD OTC Performance PARAMETER Previous Current Weekly(%) Daily (%) USI Capitalization ( 'Bn) Volume Traded ,083,438, Value Traded ( '000) ,626, `9 Deals Executed NSEASI & Moving Averages (50, 100 and 200-day) Source: NSE, MorganCapital Research Top Performers Global Market Performance in One Month Top Decliners Index Δ Index Δ Shenzhen 10.99% Turkey -5.62% Chinext 9.73% Luxembourg -5.14% SZ SME 9.69% Argentina -5.00% Greece 9.63% Mongolia -4.40% Ireland 8.17% Jordan -3.78% Shanghai 7.23% Malaysia -2.89% India 7.04% Israel -2.15% New Zealand 5.09% Abu Dhabi -1.36% UAE Dubai 5.02% Vietnam -0.71% Italy 4.36% Rus %

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.