#TheNumbers for the week ended August 26, 2016

Commentary

Nigerian Stock market ended the week in the red with the main theme being “kamikaze” policy moves by monetary authorities, who were quite busy last week.

However, we note that the market saw smallish gains in 3 of the 5 trading sessions; a steep decline on Thursday on the back of weakness in DANGCEM erased all the gains. The Nigerian stock market benchmark slid 0.72% WoW to end at 27,450.91pts. At current levels, market capitalization stands at N9.428tn and the ASI has seen a YtD decline -4.16%

Sector-wise, the Oils were big winners, adding 674bps on gains in SEPLAT & FO, the recovery in the duo is coming after several weeks of sustained selling pressure. On the other hand, the Industrials were the big losers, shedding 113bps driven by weakness in DANGCEM. While there were more sellers out there for DANGCEM shares, a single cross trade of c.200k shares at much lower levels accounted or the decline in its share price. Elsewhere, the Consumers were up 93bps on gains in INTBREW as well as significant offshore demand for NB shares. The Banks climbed 86bps mostly on the back of gains in GTB which continues to see significant buying interest from offshore investors. Noteworthy was weakness in banks that were suspended from the FX market. The Insurers were only a tad higher, adding 4bps.

The bourse saw a turnover of 1.124bn shares valued at N13.839bn compared with the 1.375bn shares valued at N12.940bn that traded in the previous week. This was driven by block trades in GTB (N4.67 billion) and NB (N2.73 billion) – the duo accounted for c.53% of total market turnover. In both names, we note local institutional selling and foreign institutional buying, in mostly prearranged cross trades. Our sense, local investors were harvesting gains in both names (GTB & NB had gained 99.8% & 59.1% respectively form their 52–week lows) and switching to fixed income given the elevated yield environment.

Half year earnings season more or less wrapped with the release of H1 numbers from UBA. The numbers were broadly in line with most its peers, impairments were higher, impacting Net Interest Income. However, earnings were boosted by higher Fee and Commission Income. It also recorded strong revaluation gains. It announced an interim dividend of N0.20 per share.

Highlights

  • CBN suspends nine banks from the interbank FX market for failing to remit NNPC cash to TSA
  • UBA readmitted into the FX market after remitting all outstanding NNPC cash to the TSA within 24hrs of the suspension.
  • CBN instructs banks to give 60% of their FX to manufacturing firms
  • The CBN settles the $ 152.48 million of Naira futures contracts it sold in two months ago at an exchange rate of N279/$ . The apex bank also executed a fresh 12-month contract at N241/$ which is scheduled to mature on Aug. 16, 2017
  • The Naira hits record low of 412 to dollar on parallel market

The Week Ahead

  • Based on its website, the National Bureau Of Statistics is guiding to release a flurry of key macro data on August 31, 2016
  • Closure of register for N0. 60 special dividend from GSK & N0.25 interim dividend from GTB
  • Dividend payment of N0.35 from REDSTAREX & N0.07 from CUSTODYINS
  • We might see increased activity levels driven by month–end rebalancing from index funds

 

 

Nigerian Stock Market

Source: FT.com

Market Snapshot

All-Share Index: 27,450.91pts
Market Cap (NGN): N9.43tn
Market Cap (USD): @305/$ $ 30.92bn
Total Volumes Traded: 1.12bn
Total Value Traded (NGN): N13.84bn
Daily Average Value Traded – WtD: N4.54bn
Advance/Decline Ratio: 27/25

 

Sector Performance:

Risers & Decliners:

  • Top Risers:

SEPLAT (+14.58%; N275.00); FO (+10.56%; N177.00) & TRANSCORP (+10.48%; N1.16)

  • Top Decliners:

FCMB (-14.96%; N1.08); AGLEVENTIS (-10.10%; N0.89) & ACADEMY (-9.52%; N0.57)

 

 

 

 

 

 

 

NAIRAMETRICS

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