Tuesday, October 04, 2016 1:36 PM / ScottFree Markets
Monthly overview of the Nigerian financial markets as reflected through SF Markets equity and fixed income indices. SF Markets is a provider of innovative benchmark and tradable indices focused on the Sub-Saharan African region.
Equity: September Highlights
·Apart from the Small Cap and Micro Cap Indices, all other (NGN) equity indices had positive returns for the month of September. The best performing index for the month was the SFNG Mid Cap 40 Index, which returned 2.50% compared to -3.55% in August.
·Volatility for the SFNG Blue-Chip 30 Index (Large Cap stocks) in September was at 6.43% (down from 11.84% in August).
·Currency Indices: The SFNG Blue-Chip 30 Index (USD) was up 2.24% while the SFNG Blue-Chip Index (EUR) was up 0.92% for the month of September.
·The SFNG Total Share Index (representing 99.5% of the Nigerian equity market) had a 2.69% increase in total market capitalisation from NGN 9.45trn (August) to NGN 9.70trn (September) while the free-float market capitalisation for the index increased by 1.24% from NGN 3.47trn (August) to NGN 3.5trn (September).
·Using the 6 month Average Daily Traded Value (ADTV) measure, liquidity for the SFNG Total Share Index in September came in at NGN 2.42bn (an increase from the NGN 2.36bn recorded in August).
·In September, 6 companies in the SFNG Total Share Index had dividends go ex, compared to 8 companies in August. The dividend yield for the index in September came in at 5.78% compared to 6.01% in August.
·The best performing sector in the SFNG Total Share Index for the month of September was Oil & Gas (9.85%) while the worst performing sector was Industrials (-4.46%)
·Barring the Technology, Financials and Industrials sectors, all other sectors in the SFNG Total Share Index had positive returns for the month of September.
Top 5 Performers
·The best performing stock in the SFNG Total Share Index for the month of September was Conoil Plc (75.50%) while the worst performing stock was Caverton Offshore Support Group Plc (-47.95%).
September 2016 Semi-Annual Review Highlights:
·16 companies had free float changes and 1 company had a share change effective 19.09.2016.
·Dangote Flour Mills Plc, Presco Plc, Total Nigeria Plc, and United Capital Plc were added to the SFNG BC30 Index.
·7-Up Bottling Company Plc, Okomu Oil Palm Plc, PZ Cussons Nigeria Plc and Sterling Bank Plc were deleted from the SFNG BC30 Index.
September 2016 Semi-Annual Review: Adds & Deletes Overview
·The Alpha Bond Index returned 2.74% in September while the Alpha Bond Index (USD) returned 4.50%.
·Volatility for the Alpha Bond Index in September was at 6.62% (down marginally from the 6.70% recorded in August).
·The market value of the Alpha Bond Index increased by 2.64% from NGN 4.876trn in August to NGN 5trn in September. The market value of the index represents 5.31% of Nigeria’s GDP.
·For the month of September, the Alpha Bond Index had an Average Weighted Coupon of 13.19% (13.21% in August) and an Average Weighted Maturity of 9.17 years (9.14 years in August).
·In September, the Average Weighted Coupon rate of the Alpha Bond Index came in at 0.75 points (i.e. 25%) below Nigeria’s inflation rate and 0.94 points (i.e.6%) below Nigeria’s interest rate.
·The Yield to Maturity of the index decreased from 15.47% in August to 15.19% in September.
·Two bonds in the Alpha Bond Index had coupon payments in September.
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