Daily Equities Market update Sandbagging positive sentiment? NASDUSI begins the month in red -2.80% April 01, 2019
Headline STERLNBNK proposes 64kobo dividend per ordinary share MAYBAKER proposes 20kobo dividend per ordinary share GTBank allays fear on the judgement against it. UNILEVER to pay its shareholders N1.50k per ordinary. STERLNBNK to hold its AGM on 25th of April,2019 OKOMUOIL also declares N3.00 dividend per share payout WAPIC notifies on the delay in Filing its 2018 reports ROYALEX to hold its board meeting on April 17, 2019 Market Summary/e In our previous reports (March 2019), we provided trend analysis of two election years ago, and observed significant trend reversal in April of these periods. Thus, if the pattern is anything to go by, then the equities market is expected to stage a rally this month. However, it seemed the market is sandbagging its potential as it trades against the drives meant to have placed the overall sentiments in the green territory. Importantly, investors prioritize less rigid economic policy, and enhanced ease of doing business than the signaling effect of monetary policy rate cut. In the same manner, the deposits money banks(dmbs) posited that decline in cash reserves required by the CBN would have been more effective to drive private sector funding as the liquidity levels are more important than reduction in cost of credit. Money Market Rates Rate(%) %Δ Overnight rate 5.57-5.10 Open Buy 5.00-4.86 Daily Commodity Price Watch Previous Current Daily (%) Brent($/PB) 67.71 68.65 1.39 Gold 1294.15 1290.07-0.32 Silver 15.12 15.11-0.07 Platinum 849.08 850.75 0.20 Copper 293.45 292.05-0.48 NASD OTC Indicators PARAMETER Previous Current Daily (%) USI 757.75 736.54-2.80 Capitalization ( 'Bn) Volume Traded Value Traded ( '000) Deals Executed 544.39 529.15-2.80 199793 1032660 416.86 49500639 18637200-62.35 12 13 8.33. Going forward, GTBank allayed the fears of the public that Garnishee proceeding judgement acclaimed in several publications is against its customer s account (the Nigerian Custom Service Board) and not the bank. That said, Equities market began the month deeply in the red zone as its shed -1.66% to 30,531.69 upon substantial profits taking in ETERNA, NESTLE, CCNN and FBNH.
In similar vein, sell pressure went further in UNIONDAC, FIDELITYBK, MBENEFIT, CORNERST, WEMABANK, DANGFLOUR and GUARANTY. On the flip side, buying interest was consolidated in IKEJAHOTEL, CAVERTON and ACCESS while the dip was purchased in UNITYBNK, CUTIX and FCMB thereby ending in the negative territory. As a result of the surge in sell pressure today, equities market capitalization lost N149.69bilion to close the session at N11.52trillion while the the Relative Strength Index (RSI) touched January 9, 2019 low at 33.08 from 42.00 it printed on Friday. Similarly, the Year-to-Date(YTD) return ended near January 17,2019 low at -2.86%. Similar to the change in volume traded last week Thursday, today it advanced 546.08% to 1.72billion, owing to surged in total volume traded on WEMABANK at 84.4% of the market volume. The total value of stocks traded also trended northwards by 16.65% to close at N3.68billion. Review of Sectoral Performance The bears held all the five sectors on our radar in its market today. Industrial and consumer goods indexes were severely browbeaten, losing -4.92% and -3.00% respectively due to the heavy sell-offs in BETAGLAS -9.94%, CCNN -9.8%, DANGFLOUR -9.8%, NESTLE -8.23% and NB -5.62%. Oil and gas sector also went down by -1.38% to 286.51 due to losses recorded in OANDO -9.73 and ETERNA -9.43% while banking and insurance indexes dipped fractionally -0.43% and -0.54% in that order as a result of price depreciation in WEMABANK -9.09%, FIDELITYBK -7.77%, ETI -3.41%, MBENEFIT-9.09%, LASACO - 6.67% and CORNERST -4.76%. 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 31,041.42 30,531.69-1.64-1.64-1.64-2.86 NSE Banking Sector Index 403.96 402.24-0.43-0.43-0.43 0.96 NSE Industrial Goods Index 1,239.73 1,202.49-3.00-3.00-3.00-2.86 NSE Consumer Goods Index 711.29 676.26-4.92-4.92-4.92-9.69 NSE Oil & Gas Index 290.52 286.51-1.38-1.38-1.38-5.23 NSE Insurance Index 125.98 125.30-0.54-0.54-0.54-0.93 Source: NSE, MorganCapital Research Investors Sentiment: The Market breadth closed negative at 0.63x Investors sentiment has continued to maintain trend under water. Amidst the irrational trends on the bourse, investors could still find fundamentally sound counters in the industrial sector and banking sector with upside potentials. Source: MorganCapitalitrade
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