Weekly Financial Market update

Transcription

1 Weekly Financial Market update Market bounces back to one-month high NASDOTC closes lower -0.22% (w/w) October 26, 2018

2 Weekly financial Market Update Weekly Market Summary: The Market breadth closed negative at 0.56x The bourse began the week by extending previous close in first two trading days by 0.37% and 0.69% apiece. It, however tumbled on Wednesday to -2.37%, thereafter recovered to close the week significantly uptrend by 1.11%. A total volume of 1.45billion shares worth N15.26billion were exchanged in 16,682 deals this week compared to 1.38billion shares worth N15.15billion in 13,478 deals which were exchanged last week. This represents 5.32%, 0.7% and 23.77% uptick in the values respectively. That said, the NSEASI advanced by 0.20% w/w due to surge in oil and gas index by 4.12% w/w while industrial goods index recorded the most decline -4.60% w/w upon loss in WAPCO ( %). Going forward to today s performance, the positive sentiments buoyed further, thus placed in market in the green as its added N132.25billion to equities market cap to close at N12.013trillion from N11.88trillion recorded yesterday. In contrast, the total traded volume and value shed % and % to end at million and N1.96billion respectively as the market index added points to close at 32,907.33, while the total deals executed rose 25.26% as against -4.58% decline recorded yesterday. Money Market Rates Daily Commodity Price Watch Previous Current Daily (%) Brent($/P B) Gold Silver Platinum Copper W-o-W returns Chart Gainers %Δ DIAMONDBNK LAWUNION FIDELITYBK JBERGER 9.98 TOTAL 8.20 UAC-PROP 7.93 HMARKINS 7.14 UNIONDAC 7.14 CUSTODIAN 5.88 AIICO 5.33 losers %Δ MCNICHOLS WAPCO BETAGLAS NEIMETH NNFM CUTIX LIVESTOCK TRANSEXPR DANGFLOUR REDSTAREX Rate %Δ Overnight rate Open Buy Back

3 Review of Sectoral Performance Sectors under review were higher today as 3 of 5 closed in the green topped by industrial sector as it trended up 2.64% to from The positive sentiments around the sector was on the back of investors hunt for bargains in the counters of FIRSTALUM (10.0%) and DANGCEM(5.24%) while PORTPAINTS, WAPCO and CCNN declined -10.0%, -1.88% and -0.2% in that order. In the same vein, banking and oil/gas indexes closed above water by 1.06% and 0.62% to and from and apiece as a result of appreciation in its 8 counters topped by ETI(4.69%), FIDELITYBK(4.5%), JAPUALOIL(5.0%) and OANDO(4.9%) as against the 7 decliners; JAIZBANK(- 9.09%), FBNH(-4.9%), DIAMONDBK(-3.36%). On the flip side, consumer goods sector was the hardest hit by bearish sentiments as it plunged 199basis points, trailed by 14 basis points marginal decline in insurance index to end at The earlier sector was suppressed by sell-off pressure in 8 counters topped by NNFM(-9.32%), DANGFLOUR(-7.55%) and NB(-4.86%) while the later fell due to losses in VERITASKAP(-10.0%) and WAPIC(-4.55%) as against appreciation in AIICO(2.6%) Movement of NSEASI(Year-to-Date) RSI (last week; 48.8)

4 NSEASI & Moving Averages (100 and 200-day) Table2: NSE Market Indices Return Open(points) Close(points) Daily(%) WtD(%) MtD(%) YTD(%) NSE All Share Index NSE Banking Sector Index NSE Industrial Goods Index NSE Consumer Goods Index NSE Oil & Gas Index NSE Insurance Index Market sentiment Investors sentiment further weakened compared to last week close as it ended the trading day with 13 gainers as against 23 losers. Hence, it portends investors still remained apathetic toward most cyclical stocks while in favour of defensive ones.

5 Top Gainers Top Losers Ticker Close Change %Δ Ticker Price Change %Δ FIRSTALUM UPDCREIT JBERGER PORTPAINT UAC-PROP VERITASKAP DANGCEM NNFM JAPAULOIL JAIZBANK OANDO LIVESTOCK ETI DANGFLOUR FIDELITYBK LEARNAFRCA AIICO NB UCAP WAPIC Traded Volume Top Traded Value Ticker Deal Volume %Δ Ticker Deal Value %Δ STERLNBANK ,826, ZENITHBANK ,230, FCMB ,657, ETI ,121, FIDELITYBK ,016, NB ,580, ACCESS ,273, STERLNBANK ,392, ZENITHBANK ,092, GUARANTY ,760, ETI ,085, INTBREW ,600, DIAMONDBNK ,280, ACCESS ,160, HONYFLOUR ,708, NESTLE ,893, FBNH ,703, GUINNESS ,396, UBA ,625, FCMB ,031, NASD OTC Performance PARAMETER Previous Current Weekly (%) Daily (%) USI Capitalization ( 'Bn) Volume Traded Value Traded ( '000) Deals Executed

6 Global Market Performance 1 day 10/25 1 week 1 month 3 months Index Change Index Change Index Change Index Change Argentina 4.18% Chinext 5.69% Brazil 6.94% Mongolia 6.99% NASDAQ 2.95% Shenzhen 4.76% Hungary 3.67% Hungary 6.36% Rus 3000 growth 2.49% Shanghai 4.72% Mongolia 3.46% Brazil 4.82% Rus % SZ SME 3.50% Nigeria 0.00% Abu Dhabi 1.07% Rus % Argentina 3.40% Abu Dhabi -0.19% Israel -0.07% S&P % Jordan 0.41% UAE Dubai -0.64% Argentina -0.10% Rus % Brazil 0.28% Jordan -0.86% Vietnam -0.52% Italy 1.71% Mongolia 0.26% Indonesia -2.03% Norway -0.77% S. Africa 1.63% Nigeria 0.00% Switzerland -3.37% United States -1.69% United States 1.63% London -0.33% Russia -4.14% Turkey -1.70% 1 day 10/25 1 week 1 month 3 months Index Change Index Change Index Change Index Change Luxembourg Luxembourg Argentina SZ SME Nikkei Austria Italy Chinext Australia Nikkei Taiwan Shenzhen Taiwan Egypt Rus Egypt Philippines Vietnam Korea Greece Egypt Denmark Finland Denmark Korea Australia SZ SME Hong Kong Denmark Ireland Denmark Ireland Israel Taiwan Nikkei Taiwan India Czech S. Africa Italy -0.13

7 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.