Daily Equities Market update Does dovish MPC stance portends respite for the bourse? NASDUSI continues uptrend by 0.64% March 26, 2019
Headline GLAXOSMITHKLINE notifies on the delay in Filing its 2018 Audited Financial Statements despite the publication of proposed dividend ACCESS directs shareholders of DIAMONDBNK to fill mandate form so as to get the consideration of cash and shares; as stipulated in the Scheme Document. Market Summary/e The Monetary Policy Committee(MPC) of The Central Bank of Nigeria(CBN) concluded its twoday meeting today. The committee decided to cut Monetary Policy Rate(MPC) by 50 basis points from 14.0% to 13.5%, while LR and CRR were maintained at 30.0% and 22.5% respectively. However, the decision was hinged on the need to stimulate growth and encourage employment thereby increasing the standard of living of Nigerians. Meanwhile, of utmost concerned was that the MPC used the word Temporary adjustment. Therefore, how long the dovish stance would take is also a major concern so as not to exacerbate the negative impact of international economic uncertainties on the domestic real and financial sector. Money Market Rates Rate(%) %Δ Overnight rate 17.29-7.14 Open Buy 16.43-6.00 Daily Commodity Price Watch Previous Current Daily (%) Brent($/PB) 66.62 66.69 0.11 Gold 1312.85 1,321.59 0.67 Silver 15.43 15.58 0.97 Platinum 848.85 858.76 1.17 Copper 285.25 285.4 0.05 NASD OTC Indicators PARAMETER Previous Current Daily (%) USI 750.56 755.38 0.64 Capitalization ( 'Bn) 539.23 542.69 0.64 Volume Traded 13196925 134460-98.98 Value Traded ( '000) 189000000 2333461-98.77 Deals Executed 7 8 14.29 Nevertheless, the cut in policy rate is expected to be positive for the equities market if monetary transmission channels between the real and monetary sector through reduction in costs of lending, increase in demand for labour, increase in output level and rise in purchasing power are not dragged by the lenders apathy to granting loans to the private sector, especially the labour intensive ones. In all, the decision should strengthen the bulls. Away from that, amidst the bearish sentiment today, investors hunted for bargains in CHIPLC, NEM, DANGFLOUR, MOBIL, OANDO, FIDELITYBK, UCAP and ZENITHBANK which helped their
share prices uptrend from previous losses recorded while buying interest was sustained in AFRIPRUD. On the flip side, investors took profits in UPL, WEMABANK, UBN, HONYFLOUR and ETI thereby ending in the red territory. However, sell-offs perpetuated in NESTLE, TRANSCORP, FCMB and NPFMCFBK. Upon the slight bearish sentiment, benchmark index ended marginally down by -0.01% while equities market added N94.97billion to end the session at N11.67trillion. Similarly, the Relative Strength Index (RSI) finished slightly lower to 39.14 from 39.21 just as the Year-to-Date(YTD) return nearly ended flattish at -1.25%. We note that the market activities were relatively quiet owing to the decline in the total volume and value traded by -14.83% and -55.16% to end at 143.71million and N1.68billion respectively while the deals executed rose 13.42% to 31,457. Review of Sectoral Performance Among the three sectors which closed fractionally uptrends today, insurance sector topped the chart as it rose 0.87%, following the buying interest in NEM 6.33% which knocked off price depreciation in WAPIC -4.76%. In the same manner, industrial goods and oil/gas indexes went up by 0.35% and 0.49% due to price appreciation in DANGCEM 0.8%, MOBIL 1.8% and OANDO 1.79%. On the other hand, banking sector and consumer goods indexes got depressed by -0.38% and -0.54% as a result of WEMABANK -6.25%, ETI -3.33%, UBN -2.13%, UBA - 0.64%, NB -3.6%, PZ -2.86%, ETERNA -2.08% and HONYFLOUR -0.83%, among others 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 31,042.32 31,038.86-0.01-0.32-2.14-1.25 NSE Banking Sector Index 412.51 410.94-0.38-1.16-0.04 3.15 NSE Industrial Goods Index 1,249.69 1,254.07 0.35-1.29-1.50 1.31 NSE Consumer Goods Index 702.34 698.55-0.54-0.74-4.36-6.71 NSE Oil & Gas Index 278.45 279.81 0.49-0.26-6.30-7.45 NSE Insurance Index 127.25 128.36 0.87-0.11-3.68 1.49 Source: NSE, MorganCapital Research Investors Sentiment: The Market breadth closed negative at 0.82x 0.63x Investors sentiment improved from 0.63x to 0.82x as the market ended with 18 gainers to 22 decliners. We however expect positive market reaction to the new expansionary monetary policy in the session of tomorrow. Source: MorganCapitalitrade
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