Daily Equities Market update A peep into the green territory NASDUSI maintained downtrends -0.13% January 22, 2018
Headline ACCESS notifies on the cancellation of Extraordinary general meeting United Capital plc announces the appointment of Mr. Shedrack Onakpoma as its new Chief financial officer. Market Summary All parameters that could drive various sectors of the Nigerian economy seemed to be in the state of inertia until the outcome of the general election gives clue to a lucid policy path upon which businesses, foreign investors and monetary policy authority will begin to define strategies to chart its course in the next four years. For context, the volatility of the equities market which has become largely unpredictable as sentiments are not mostly driven by fundamentals of the listed companies, rather, investors positions are hinged on headline risks and short run capital gains. Money Market Rates Rate(%) %Δ Overnight rate 19.08-8.08 Open Buy 17.50-7.83 Daily Commodity Price Watch Previous Current Daily (%) Brent($/PB) 62.75 61.04-2.73 Gold 1280.27 1281.3 0.08 Silver 15.31 15.33 0.13 Platinum 796.86 788.43-1.06 Copper 268.95 265.8-1.17 NASD OTC Indicators PARAMETER Previous Current Daily (%) USI 750.3 749.31-0.13 Capitalization ( 'Bn) Volume Traded Value Traded ( '000) Deals Executed 539.04 538.33-0.13 7077512 437864-93.81 103679.8 11503.65-88.90 15 8-46.67 We however observed that investors bought the dip in ROYALEX, DANGFLOUR, WAPCO and ZENITHBANK thereby seeing their share prices close in the green territory from previous negative close while positive sentiment was maintained in WEMABANK, FIDELITYBK, VITAFOAM and AIICO. On the other hand, CCNN dipped significantly from the positive territory while SOVRENINS and WAPIC were further submerged in the red ocean. NSEASI rose marginally by 0.01% to end the session at 30,736.88. while the equities market Leading the Global Investment Path to Africa
cap. inched up by N1.55billion to finish at N11.46trillion. That said, the total volume and value of stocks traded declined significantly by - 50.72% and -55.83% to 245.987million and N2.44billion respectively. Furthermore, the RSI advanced slightly northward to end at 51.14, just as the Year-to-Date(YtD) return rose marginally by 1bp to -2.21% Review of Sectoral Performance More sectors have continued to decline as industrial goods sector which has maintained positive sentiments in the year was browbeaten today by -2.45% to end at 1,325.92 upon sell pressures in CCNN -7.06% which weighed on the gain in WAPCO 1.61%. Consumer goods and insurance indexes trailed by -0.27% and -0.41% to close at 721.92 and 123.70 apiece on the back of price depreciation in MCNICHOLS -9.3%, NB -1.23%,SOVRENINS -8.33%, WAPIC -4.76% and NEM -3.85% as against gains in LINKASSURE 9.84%, AIICO 3.17% and PRESTIGE 2.0%. On the positive side, oil and gas sector advanced 1.68% to 274.36 as a result of capital gains in OANDO 6.82% and SEPLAT 1.89% while the banking sector index gained 0.76% upon buying interest in FIDELITYBK 3.47%, NPFMCRFBK 2.74%, WEMABANK 1.64%, ZENITHBANK 1.4% among others against decline in prices of UBA -1.36% and STERLNBANK -0.49%. Movement of NSEASI(Year-to-Date) Source: MorganCapital Research Leading the Global Investment Path to Africa
NSE Market Indices Return Open(points) Close(points) Daily(%) WtD(%) MtD(%) YTD(%) NSE All Share Index 30,732.72 30,736.88 0.01-0.87-2.21-2.21 NSE Banking Sector Index 378.97 381.84 0.76 0.61-4.16-4.16 NSE Industrial Goods Index 1,359.18 1,325.92-2.45-1.50 7.11 7.11 NSE Consumer Goods Index 723.85 721.92-0.27-0.27-3.59-3.59 NSE Oil & Gas Index 269.82 274.36 1.68-2.94-9.25-9.25 NSE Insurance Index 124.21 123.70-0.41 1.08-2.20-2.20 Source: NSE, MorganCapital Research Investors Sentiment: The Market breadth closed positive at 0.78x Investors sentiment surged significantly as the market ended with 27 gainers to 11 losers. Hence, we expect some positive close in the week amidst intermittent downtrend. Source: MorganCapital I trade the Global Investment Path to Africa
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.