Weekly Financial Market update Positive earnings sustain buying interest Unlisted Securities market maintains positive momentum March 29, 2019
Weekly financial Market Update Weekly Market Summary: The Market breadth closed negative at 0.89x The equities market trading session this week was quite interesting as the previous drags have begun to flip sides to spur it in the bullish territory. The Monetary policy decision on rate reduction took the lead role. The stance was taken to stimulate positive interest in the real sector of the economy, but the initial reaction on the local bourse lagged significantly until some listed companies began to awash the Exchange with positive earnings for FY 2018. Upon this, benchmark index turned slightly uptrend yesterday, and further consolidated the gains today thereby seeing more counters ending in the bullish market. Away from that, the figure below provides a quick answer to the relationship between monetary policy and credit to private sector in Nigeria. Hence, this support the dovish position of MPC member to enhance credit to private sector, increase productivity, create jobs and stimulate economic growth. However, a critical look at the figure also revealed the weakness of tinkling MPR to stimulate real sector performance as the supply side of credit creation( CRR) need to be enhanced to avoid the prevalence of parallel market rates due to liquidity shortage to meet increase in demand. Daily Commodity Price Watch Previous Current Daily (%) Brent($/PB) 66.79 67.71 1.38 Gold 1291.56 1294.15 0.20 Silver 15.05 15.12 0.47 Platinum 842.62 849.08 0.77 Copper 287.5 293.45 2.07 Money Market Rates Rate(%) %Δ Overnight rate 10.67-0.04 Open Buy 9.86-0.21 w-o-w returns chart Gainers %Δ ETERNA 10.42 REDSTAREX 10.00 IKEJAHOTEL 9.94 CILEASING 9.90 ABCTRANS 8.16 SEPLAT 7.27 NESTLE 5.33 MOBIL 4.71 CAVERTON 4.62 STERLNBANK 3.45 losers %Δ FIDELITYBK -13.08 DANGFLOUR -12.07 SOVRENINS -9.09 MBENEFIT -8.33 ACADEMY -8.33 PRESCO -7.72 PZ -6.67 NPFMCRFBK -6.29 LASACO -6.25 ACCESS -5.84 Meanwhile, the bulls had three of five trading days of the week consequent upon which three sectors ended deeply in the red territory. Banking sector index shed -2.84% w/w, following the sell pressure in
FIDELITYBK, NPFMCRFBK, ACCESS, FCMB, GUARANTY, ETI and UBA. Similarly, industrial goods index dipped -2.42%w/w on the back of negative sentiment around CCNN and WAPCO just as insurance sector went down by -1.96% upon sell-offs in SOVRENINS, MBENEFIT, LASACO, NEM, WAPIC, NIGERINS and AIICO. To the advancers chart, oil and gas index surged by 3.58% w/w as buying intensified in ETERNA, SEPLAT and MOBIL. Followed by 1.07% uptick in consumer goods index week-on-week as a result of appreciation in DANGSUGAR, OKOMUOIL, UNILEVER and CADBURY. Going forward, the total volume of stocks exchanged this week advanced 119.52% to 2.63billiom from 1.19billion as the value traded also rose 4.61% to end at N12.79billion from N12.23billion. On the other hand, total deals declined -10.87% to 16,298. The Relative Strength Index(RSI) turned northwards to 42.0 today after it being stocked near the oversold for some days. Similarly the Year-to- Date(YTD) return went up to -1.24% from -1.90% it printed at yesterday. Meanwhile, a total of 266.86million units of shares worth N3.15billion were exchanged in 3,455 deals today. Review of Sectoral Performance Today, the bulls dragged three sectors in its market, topped by oil and gas index which advanced 4.84% upon gains recorded in ETERNA 9.28%, SEPLAT 9.26% and MOBIL 4.71%. Consumer goods sector followed as it rose by 2.30% as a result of price appreciation in NESTLE 5.48% and PZ 3.15% while industrial goods sector rose marginally by 0.18% to 1,239.73 following the buying interest in CCNN 4.74% and DANGCEM 0.53%. On the flip side, banking sector index went down by -1.08% due to the negative sentiments in FIDELITYBK -8.85%, UNITYBK -4.76%, WEMABANK - 3.75%, FCMB -3.12%, GUARANTY -2.3% and UBA -1.28%. on a lighter vein, insurance index waned by -0.42%, owing to price depreciation in MBENEFIT - 8.33% and CORNERST -4.55%. 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 30,833.50 31,041.42 0.67-0.31-2.14-1.24 NSE Banking Sector Index 408.39 403.96-1.08-2.84-1.74 1.40 NSE Industrial Goods Index 1,237.54 1,239.73 0.18-2.42-2.63 0.15 NSE Consumer Goods Index 695.28 711.29 2.30 1.07-2.61-5.01 NSE Oil & Gas Index 277.10 290.52 4.84 3.56-2.71-3.90 NSE Insurance Index 126.51 125.98-0.42-1.96-5.47-0.40 Source: NSE, MorganCapital Research Market sentiment Investors sentiment continued in the north today as 18 counters ended downtrend while 17 finished in the green territory. Therefore, we believed the bullish sentiment will garner more momentum nextweek. Best Performed stocks Least Performed stocks Ticker Close Change %Δ Ticker Price Change %Δ IKEJAHOTEL 1.88 0.17 9.94 UNIONDAC 0.30-0.03-9.09 ETERNA 5.30 0.45 9.28 CUTIX 1.85-0.18-8.87 SEPLAT 590.00 50.00 9.26 FIDELITYBK 2.06-0.20-8.85 CAVERTON 2.49 0.14 5.96 MBENEFIT 0.22-0.02-8.33 NESTLE 1580.00 82.10 5.48 CADBURY 10.00-0.90-8.26 CCNN 19.90 0.90 4.74 PRESCO 62.75-5.25-7.72 MOBIL 178.00 8.00 4.71 WAPCO 12.20-0.75-5.79 PZ 9.80 0.30 3.16 UNITYBNK 0.80-0.04-4.76 UCAP 2.85 0.05 1.79 CORNERST 0.21-0.01-4.55 ACCESS 6.45 0.10 1.57 UPL 1.82-0.08-4.21 Top Traded Stocks by Volume Top Traded Stocks by Value Ticker Deal Volume %Δ Ticker Deal Value %Δ FIDELITYBK 408 58,191,981.00 618.08 ZENITHBANK 251 562,735,076.60 171.36 CHAMS 40 40,897,639.00-58.91 NESTLE 54 502,578,949.40 129.14 UBA 319 36,300,718.00 108.86 GUARANTY 207 492,050,127.10 40.99 ZENITHBANK 251 25,753,965.00 170.63 SEPLAT 33 383,653,914.80 560.36 FCMB 256 15,915,987.00 364.02 UBA 319 280,036,156.75 109.05 GUARANTY 207 13,376,911.00 41.23 DANGCEM 68 238,264,787.70 5975.18 TRANSCORP 86 12,592,831.00 188.68 FIDELITYBK 408 126,335,177.94 583.19 ACCESS 141 7,659,084.00 83.23 FLOURMILL 60 103,802,921.75 2920.00 STERLNBANK 51 5,897,126.00-55.10 ACCESS 141 49,076,001.90 85.89 FLOURMILL 60 5,766,186.00 3018.54 UNILEVER 47 46,263,764.30 10680.17 Source: NSE, MorganCapital Research
NASD OTC Performance PARAMETER Previous Current Weekly(%) Daily (%) USI 748.73 757.75 0.96 1.20 Capitalization ( 'Bn) 537.92 544.39 0.96 1.20 Volume Traded 33,723.00 199,793.00-98.49 492.45 Value Traded ( '000) 8,613,840.50 49,500,639.00-73.81 474.66 Deals Executed 10.00 12.00 71.43 20.00 NSEASI & Moving Averages (50, 100 and 200-day) Source: NSE, MorganCapital Research Top Performers Global Market Performance in One week Top Decliners Index Δ Index Δ New Zealand 3.22% Turkey -10.92% India 0.24% Chinext -4.52% Vietnam 0.12% Luxembourg -3.97% S. Africa 0.10% Finland -3.90% UAE Dubai 0.10% Argentina -3.78% Australia 0.05% SZ SME -3.58% Thailand 0.02% Shanghai -3.43% Ireland 0.00% Shenzhen -3.28% Mongolia -0.06% Sweden -2.85% Nigeria -0.24% Norway -2.71%
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