Weekly Financial Market update Trading against adaptive expectation! Unlisted Securities market ends -0.03% March 15 2019
Weekly financial Market Update Weekly Market Summary: The Market breadth closed negative at 0.47x A cue from adaptive expectation which suggests investors will respond to current market vagaries based on recent past event when financial earnings and dividend declaration tend to spur prices of stocks was deeply invalidated as most companies that have released its Audited financial reports were either could not sustain values uptrend or garnered the expected positive sentiments at all. In all, we believe that the equities market is set for a sustained trend reversal as the negative sentiments of political uncertainties approach asymptotic end and investors focus on fundamentally sound counters to optimize returns on position. That said, benchmark index opened the week downtrend at -0.90% as such, the bearish trend extended southward in the week. In addition, the negative sentiments weighed on the Yearto-Date, Month-to-Date and Week-to-Date to close in the negative territory and also sustained the RSI near the oversold region. On weekly basis, banking sector index bled the most at -6.13% on the back of depreciation in FCMB, ZENITHBANK, WEMABANK, UNITYBNK and JAIZBANK, among others. Industrial index trailed by -1.12% upon selloffs in DANGCEM, FIRSTALUM and WAPCO. Similarly, consumer goods and insurance indexes also shed -0.43% and -0.79%w/w apiece while oil and gas sector index stayed fairly afloat by 0.09% owing to slight gain in OANDO. Daily Commodity Price Watch Previous Current Daily (%) Brent($/PB) 67.31 67.16-0.22 Gold 1295.65 1302.4 0.52 Silver 15.19 15.32 0.86 Platinum 827.33 831.78 0.54 Copper 289.65 290.6 0.33 Money Market Rates Rate(%) %Δ Overnight rate 11.67 0.08 Open Buy 11.17 0.50 w-o-w returns chart Gainers %Δ CAP 10.00 MCNICHOLS 9.62 ROYALEX 9.37 CADBURY 9.09 NEIMETH 4.69 MBENEFIT 4.35 NEM 4.17 CHIPLC 3.57 NASCON 3.50 OANDO 2.63 losers %Δ AFRIPRUD -20.83 FCMB -12.74 ZENITHBANK -11.82 INTBREW -10.93 WEMABANK -10.47 UNITYBNK -10.00 JAIZBANK -10.00 TRANSCOHOT -9.24 AGLEVENT -8.82 UCAP -8.79
Going forward, the total volume and value traded in the week declined - 13.77% and -2.95% to close at 1.11billion and N13.46billion from 1.29billion and N13.87billion apiece just as the total deals went down -13.16% to finish the week at 15,027 from 17,304. Away from that, NSEASI dropped 22 basis points to end at 31,142.72 while the market capitalization ended lower by N25.38billion to N11.61trillion. In 3022 deals executed, the value and volume of stocks exchanged printed at 209.62million and N3.33billion, representing 18.01% and 30.06% increase the session. Upon this, the Relative Strength Index(RSI) declined to 37.86 from 50.24 recorded lastweek similar to the dip in YTD return in the south at -0.92% from 1.57% its closed with last week Friday. Review of Sectoral Performance Save for the positive sentiments in oil and gas sector which advanced by 0.32% to close 292.09 as a result of price appreciation in OANDO 1.74% and MOBIL 0.61%, other sectors ended in the negative territory. Banking sector topped the decliners chart by -0.80% decline due to negative sentiments in STERLNBANK -7.6%, FCMB -5.61%, UBA -2.61%, WEMABANK - 2.53% and ACCESS -2.52%, among others. Insurance index trailed by -0.22% decline upon sell pressure in MBENEFIT -4.0% and LINKASSURE -1.6%. However, industrial and consumer goods indexes went down slightly by - 0.05% and -0.03% on the back of tepid buying interest in the counters of FIRSTALUM -3.45%, WAPCO -0.39%, DANGFLOUR -0.97% and FLOURMILL - 0.52%. Movement of NSEASI(Year-to-Date) Relative Strength Index (RSI) Source: MorganCapital Research
NSE Market Indices Return Open(points) Close(points) Daily(%) WtD(%) MtD(%) YTD(%) NSE All Share Index 31,210.79 31,142.72-0.22-2.45-1.82-0.92 NSE Banking Sector Index 403.70 400.48-0.80-6.13-2.58 0.52 NSE Industrial Goods Index 1,241.11 1,240.46-0.05-1.12-2.57 0.21 NSE Consumer Goods Index 720.55 720.32-0.03-0.43-1.37-3.81 NSE Oil & Gas Index 291.15 292.09 0.32 0.09-2.18-3.38 NSE Insurance Index 130.19 129.91-0.22-0.79-2.52 2.71 Source: NSE, MorganCapital Research Market sentiment Even in the midst of seeming prolonged sell-offs, we still maintain positive outlook on the equities market despite the decline in investors sentiments. Best Performed stocks Least Performed stocks Ticker Close Change %Δ Ticker Price Change %Δ ROYALEX 0.35 0.03 9.38 IKEJAHOTEL 2.07-0.23-10.00 JAIZBANK 0.54 0.03 5.88 STERLNBANK 2.31-0.19-7.60 NEIMETH 0.67 0.02 3.08 UCAP 2.80-0.20-6.67 UBN 7.00 0.15 2.19 AFRIPRUD 3.80-0.25-6.17 OANDO 5.85 0.10 1.74 FCMB 1.85-0.11-5.61 TRANSCORP 1.25 0.02 1.63 MBENEFIT 0.24-0.01-4.00 CUSTODIAN 6.05 0.05 0.83 FIRSTALUM 0.28-0.01-3.45 MOBIL 166.00 1.00 0.61 UBA 7.45-0.20-2.61 STANBIC 48.10 0.10 0.21 WEMABANK 0.77-0.02-2.53 Top Traded Stocks by Volume Top Traded Stocks by Value Ticker Deal Volume %Δ Ticker Deal Value %Δ FBNH 238 39,958,100.00 849.69 ZENITHBANK 311 877,857,056.50-51.25 ZENITHBANK 311 39,600,019.00-50.98 GUARANTY 357 842,936,445.65 269.32 UBA 260 24,037,839.00 309.99 NESTLE 72 459,966,508.90 320.56 GUARANTY 357 23,908,441.00 273.59 FBNH 238 327,034,289.30 847.32 ACCESS 263 17,573,824.00 471.67 UBA 260 181,946,970.80 306.04 TRANSCORP 49 11,615,946.00 185.35 STANBIC 56 129,339,491.25 9370.09 FCMB 110 11,035,999.00-9.05 DANGCEM 53 103,089,249.90 260.99 DIAMONDBNK 92 8,011,582.00 1324.85 ACCESS 263 100,230,891.90 448.87 FLOURMILL 54 3,653,577.00 1666.87 FLOURMILL 54 69,431,020.50 1650.17 UCAP 66 2,762,064.00 290.35 NB 79 39,881,183.55 58.07 Source: NSE, MorganCapital Research
NASD OTC Performance PARAMETER Previous Current Weekly(%) Daily (%) USI 724.97 734.06-0.3 1.3 Capitalization ( 'Bn) 520.84 527.38-0.3 1.3 Volume Traded 553600 8070908 2450.9 1357.9 Value Traded ( '000) 1.58E+08 1.12E+08 2690301.4-29.2 Deals Executed 11 9 80.0-18.2 NSEASI & Moving Averages (100 and 200-day) Source: NSE, MorganCapital Research Top Performers Global Market Performance in One week Top Decliners Index Δ Index Δ Greece 11.44% Mongolia -1.40% Netherlands 4.08% Luxembourg -1.22% Brazil 3.96% UAE Dubai -0.78% NASDAQ 3.78% Australia -0.35% India 3.69% Thailand -0.28% Finland 3.60% Jordan -0.21% Austria 3.54% Ireland 0.00% Paris 3.33% Philippines 0.02% Rus 3000 growth 3.10% Malaysia 0.04% S&P 500 2.89% Singapore 0.13%
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) 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.