Weekly Financial Market update November ends in the green!!! Banking sector enjoys stable outlook ratings November 30, 2018
Weekly financial Market Update Weekly Market Summary: The Market breadth closed positive at 1.47x This week, the Nigerian capital market was not spared from the downside risks of the International oil market volatility and plummeting foreign reserves as well as increase in returns on fixed income instruments across tenors due to nudges in rates offered by CBN on OMO; up 10.5 basis points to 13.11% from 13.0% in October 2018, as such, made the debt market more attractive to institution investors. Consequent upon the exogenous uncertainties, market resumed this week in the red -0.46%; a deceleration from the previous week close - 0.96%, thereafter dipped significantly on Tuesday and Thursday -1.14% and -1.33% while it ended the week with a little breather o.86%. Furthermore, the bourse lost N293.69billion to the bears compared to N198.44billion shed last week on the back of significantly selloffs in Oil/gas, Industrial goods and Banking sector counters topped by DIAMONDBANK, UNITYBNK and SEPLAT while CONTINSURE, BETAGLAS and CUTIX topped the counters which enjoyed investors interest in the week. However, A total volume of 1.199billion shares worth N14.277billion were exchanged in 15,841 deals this week compared to 1,282billion shares valued N23.143billion traded last week in 11,472 deals. Money Market Rates Rate(%) %Δ Overnight rate 17.36 2.52 Open Buy 16.57 2.74 Daily Commodity Price Watch Previous Current Daily (%) Brent($/PB) 59.67 59.22-0.75 Gold 1227.34 1220.63-0.55 Silver 14.44 14.2-1.66 Platinum 821.16 802.48-2.27 Copper 279.95 278.85-0.39 w-o-w returns chart Gainers %Δ CONTINSURE 33.33 BETAGLAS 9.98 CUTIX 9.64 GLAXOSMITH 9.43 MBENEFIT 8.7 CAP 7.88 PZ 7.04 MANSARD 6.32 MOBIL 6.06 NAHCO 4.96 losers %Δ DIAMONDBNK -31.58 PRESTIGE -30.38 UNITYBNK -18.82 AGLEVENT -12.12 VERITASKAP -12 NEM -11.32 SEPLAT -9.68 LAWUNION -9.62 LIVESTOCK -8.77 NIGERINS -8.33
Away from that to today s session, the equities market added 262.62 to its index to close at 30,874 while capitalization gained N95.88billion to finish at N11.271trillion upon renewed interest in FCMB, UCAP, FBNH, UBA, WEMABANK, GUARANTY among others, in contrast to selloffs in a number of counters topped by NEM, WAPCO and DIAMONDBNK. As a result, RSI turned the curve from oversold region 23.74 to end at 30.73 while the Year-to-Date (YtD) performance, although still in the red ocean 19.27% inched up 69 basis points to close the trading session. Review of Sectoral Performance Sectors mainly closed in the positive territory today save insurance sector. On the top of the chart were banking and oil and gas sectors which advanced by 1.53% and 1.52% due to positive outlook on the tier 1 banks by fitch ratings and impressive financials of FCMB while OPEC heads expedition to Nigeria and other countries also signaled stability of oil prices in near term. These, however garnered positive momentum around most of the sectors heavyweight counters topped by FCMB 9.85%, UBA 6.38%, FIDELITYBK 5.88%, FBNH 4.41%, MOBIL 9.38%, OANDO 2.17%, FO 1.98% and TOTAL 0.76%. The top two sectors were trailed by consumer and industrial goods sectors as its gained 0.90% and 0.14% to end at 735.02 and 1244.53 respectively on the back of gains in NB 4.03%, HONYFLOUR 1.85% and UNILEVER 1.01% and DANGCEM 1.03% as against losses in DANGFLOUR -1.61%, DANGSUGAR -1.15%, CAP -9.87% and WAPCO -0.38%. That said, insurance sector dipped -0.73% to finish at 126.37 due to decline in NIGERINS -8.33%, WAPIC -5.0% and NEM -2.08% while other counters ended flat. Movement of NSEASI(Year-to-Date) Relative Strength Index(RSI) RSI 42.64 (last week; 40.19)
NSE Market Indices Return Open(points) Close(points) Daily(%) WtD(%) MtD(%) YTD(%) NSE All Share Index 30611.55 30874.17 0.86-2.54-5.77-19.27 NSE Banking Sector Index 392.46 398.47 1.53-2.99-3.11-16.19 NSE Industrial Goods Index 1242.80 1244.53 0.14-3.36-18.59-37.00 NSE Consumer Goods Index 728.49 735.02 0.90 0.08-3.08-24.70 NSE Oil & Gas Index 271.89 276.03 1.52-5.12-4.05-16.53 NSE Insurance Index 127.30 126.37-0.73 4.71 0.88-9.33 Source: NSE, MorganCapital Research Market sentiment Even though investors sentiment was strengthened today as its recorded 22 gainers as against 15 losers, the market still remained in the bear territory. Therefore, we advise investors to tread the market with caution by being abreast with potential headline risks. Top Gainers Top Losers Ticker Close Change %Δ Ticker Price Change %Δ FCMB 1.45 0.13 9.85 CAP 31.5-3.45-9.87 MOBIL 175 15 9.38 NIGERINS 0.22-0.02-8.33 NAHCO 3.6 0.27 8.11 CUSTODIAN 4.9-0.4-7.55 UBA 7.5 0.45 6.38 ETERNA 4.2-0.3-6.67 FIDELITYBK 1.98 0.11 5.88 UNITYBNK 0.69-0.04-5.48 FBNH 7.1 0.3 4.41 WAPIC 0.38-0.02-5 NB 82.6 3.2 4.03 STANBIC 48-2 -4 ACCESS 7.75 0.25 3.33 ABCTRANS 0.27-0.01-3.57 UCAP 2.8 0.09 3.32 NEM 2.35-0.05-2.08 ETI 15.95 0.45 2.9 DANGFLOUR 6.1-0.1-1.61 Top Traded Stocks by Volume Top Traded Stocks by Value Ticker Deal Volume %Δ Ticker Deal Value %Δ CAP 46 1,074,654.00 87.22 GUARANTY 195 571,146,637.10 22.82 NIGERINS 7 187,000.00 13772.4 ZENITHBANK 187 463,449,623.70-10.05 CUSTODIAN 11 254,574.00 1031.44 DANGCEM 110 421,224,712.90 111.33 ETERNA 25 404,983.00 37.65 FBNH 281 152,632,660.45 75.37 UNITYBNK 15 203,304.00 76.69 UNILEVER 58 127,620,825.35 17896.5 WAPIC 21 1,599,382.00 4616.55 ACCESS 120 86,443,857.05-82.81 STANBIC 21 218,991.00-99.5 DIAMONDBNK 205 78,826,293.56 186.53 ABCTRANS 4 1,205,100.00 1105.1 INTBREW 9 64,250,495.85 452.34 NEM 17 628,841.00 14.71 SEPLAT 26 54,309,488.20 28060.9 DANGFLOUR 38 451,128.00-85.3 NESTLE 28 51,346,882.10-46.57 Source: NSE, MorganCapital Research
NASD OTC Performance PARAMETER Previous Current Weekly(%) Daily (%) USI 698 705.6-1.91 1.09 Capitalization ( 'Bn) 485.13 490.41-1.91 1.09 Volume Traded 73476 40,639,975.00 390668.99 55210.54 Value Traded ( '000) 10998.9 32894.26 1891.66 199.07 Deals Executed 7 16 220.00 128.57 NSEASI & Moving Averages (100 and 200-day) Source: NSE, MorganCapital Research Top Performers Global Market Performance 1 day 11/29 1 week 1 month 3 months Index Change Index Change Index Change Index Change Greece 0.025 Rus 3000 growth 0.0432 Hungary 0.0982 Argentina 0.2395 Russia 0.025 NASDAQ 0.0431 Argentina 0.0894 Brazil 0.1444 Mexico 0.0225 Argentina 0.0399 Poland 0.076 Hungary 0.065 Indonesia 0.0193 United States 0.0357 Brazil 0.0706 Russia 0.0519 Poland 0.0135 India 0.034 Hong Kong 0.0661 Turkey 0.0198 India 0.0127 Sweden 0.0334 India 0.0617 Indonesia 0.0069 Switzerland 0.0117 S&P 500 0.0331 Indonesia 0.0613 Mongolia -0.0011 Turkey 0.0112 Rus 1000 0.0329 Korea 0.0591 Switzerland -0.009 Argentina 0.011 Greece 0.0325 Nikkei 225 0.0526 Czech -0.0122 Sweden 0.01 Rus 3000 0.0323 Turkey 0.0506 Israel -0.0173 ` Top Decliners 1 day 11/29 1 week 1 month 3 months Index Change Index Change Index Change Index Change Abu Dhabi -0.0227 SZ SME -0.0431 Nigeria -0.091 Greece -0.168 Chinext -0.0211 Abu Dhabi -0.0431 Luxembourg -0.0822 Mexico -0.1649 Shenzhen -0.0206 Jordan -0.0411 Mongolia -0.0615 SZ SME -0.1629 SZ SME -0.0203 Shenzhen -0.0376 Jordan -0.0502 Luxembourg -0.1608 Jordan -0.0173 UAE Dubai -0.0313 Mexico -0.0448 S. Africa -0.1547 Shanghai -0.0132 Chinext -0.0304 Greece -0.0342 Egypt -0.1514 Hong Kong -0.0087 Shanghai -0.0295 Ireland -0.033 Ireland -0.1421 UAE Dubai -0.0061 Egypt -0.0217 Norway -0.0264 Finland -0.1284 Israel -0.0044 Mongolia -0.0149 Portugal -0.0226 Shenzhen -0.1246 Rus 2000-0.0038 Ireland -0.0013 Abu Dhabi -0.0208 Portugal -0.1211
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) 3429613, 234-(1)4540114 Email: 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.