Daily Equities Market update

Transcription

1 Daily Equities Market update Market RSI breaks resistance slightly NASDUSI continues southwards -0.06% April 02, 2019

2 Headline CWG receives permission to extend the filing of its FY 18 reports. DAARCOM, NAHCO and LASACO notify on delay in 2018 reports filing. ACCESS announces dual listing of N15billion corporate green bond Capital Hotel declares 50k0b0 dividend per share payout FLOURMILLS announces the resignation of Mr. Rotimi Fadipe Market Summary/e The bears undeterred influence on the equities market pushed NSEASI further downtrends today, even amidst positive outlooks on the domestic economy, and a number of stimulus policy to attract the bulls. However, on the back of intensified sell pressure witnessed today, the RSI dipped slightly below the oversold region, after it recovered from the dip printed on 3 rd of December, This portends that the likelihood of the bourse to rally uptrends is stronger than the previous months. Meanwhile, negative sentiment perpetuated in BETAGLAS, NB, OANDO, FIDELITYBK, NESTLE, DANGFLOUR, ETI, FBNH and UACN while CAVERTON, UNITYBNK, CHAMS and ZENITHBANK turned in the red territory from the price appreciations recorded previously. 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 On the other hand, investors still maintained strong buying interest in IKEJAHOTEL, FCMB and STANBIC while significant positive sentiment helped WEMABANK to finish in the bullish market from the decline recorded yesterday following its proposed dividend payout of 3 kobo per ordinary share. The Capital Market Benchmark Index closed 100 basis points lower to end the session at 30, while the capitalization shed

3 N169.0billion to finish at N11.52trillion. As earlier noted, the Relative Strength Index (RSI) broke its lower bound (oversold region) to a low of from it closed at yesterday. In similar manner, the Year-to-Date(YTD) return continued around its January 2019 lows at -3.83%. Save for the outlier recorded in total volume of stocks traded yesterday, it ended above the average daily traded to close at N376.95million while the total value traded advanced 23.32% to N4.54billlion. Review of Sectoral Performance Two sectors finished uptrends today. Thanks to the improved buying interest in counters of industrial goods and insurance indexes as they inched 0.14% and 0.93% following price appreciation in DANGCEM 1.05%, SOVRENINS 10.0% and NEM 4.95%. On the decliners space, consumer goods index plunged -3.84%, owing to sell-offs in its eight(8) counters topped by NB -9.68%, VITAFOAM -9.62%, CHAMPION -8.97% and UNILEVER -8.46%. Similarly, banking and oil/gas indexes went down -1.11% and % JAIZBANK -5.77%, FIDELITYBK -4.74%, ZENITHBANK -2.74%, FO -9.93% and OANDO -7.84%. 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 Investors Sentiment: The Market breadth closed negative at 0.36x As negative sentiment persists, 28 counters finished in the bearish market while 10 counters closed in the positive territory. We believe that the decline in market value has created more room for bargain hunters to take position in fundamentally sound stocks. Source: MorganCapitalitrade

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 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.