Friday, December 02, 2016 6:55 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: November Highlights
• All (NGN) equity indices had negative returns for the month of November. The best performing index for the month was the SFNG Micro Cap Index, which returned -0.05% compared to -0.19% in October.
• Volatility for the SFNG Blue-Chip 30 Index (Large Cap stocks) in November was at 9.68% (down from 10.21% in October).
• Currency Indices: The SFNG Blue-Chip 30 Index (USD) was down 4.67% while the SFNG Blue-Chip Index (EUR) was down 1.73% for the month of November.
• The SFNG Total Share Index (representing 99.5% of the Nigerian equity market) had a 7.28% decrease in total market capitalisation from NGN 9.32trn (October) to NGN 8.64trn (November) while the free-float market capitalisation for the index decreased by 4.67% from NGN 3.4trn (October) to NGN 3.24trn (November).
• Using the 6 month Average Daily Traded Value (ADTV) measure, liquidity for the SFNG Total Share Index in November came in at NGN 2.32bn (a decrease from the NGN 2.48bn recorded in October).
• In November, 3 companies in the SFNG Total Share Index had dividends go ex, compared to 5 companies in October. The dividend yield for the index in November came in at 5.99% compared to 5.92% in October.
• The best performing sector in the SFNG Total Share Index for the month of November was Technology (0%) while the worst performing sector was Oil & Gas (-16.15%).
• Barring the Technology sector which was unchanged, all other sectors in the SFNG Total Share Index had negative returns for the month of November.
Top 5 Performers
· The best performing stock in the SFNG Total Share Index for the month of November was Mobil Oil Nig Plc (40.35%) while the worst performing stock was Forte Oil Plc (-55.24%).
Fixed Income: November Highlights
• The Alpha Bond Index returned -1.93% in November while the Alpha Bond Index (USD) returned -1.84%.
• Volatility for the Alpha Bond Index in November was at 5.02% (up from the 3.77% recorded in October).
• The market value of the Alpha Bond Index decreased by 0.87% from NGN 5.32trn in October to NGN 5.27trn in November. The market value of the index represents 5.59% of Nigeria’s GDP.
• For the month of November, the Alpha Bond Index had an Average Weighted Coupon of 13.26% (13.24% in October) and an Average Weighted Maturity of 8.91 years (8.98 years in October).
• In November, the Average Weighted Coupon rate of the Alpha Bond Index came in at 0.72 points (i.e. 28%) below Nigeria’s inflation rate and 0.95 points (i.e.5%) below Nigeria’s interest rate.
• The Yield to Maturity of the index increased from 15.28% in October to 16.09% in November.
• Three bonds in the Alpha Bond Index had coupon payments in November.
1. SF Markets - October 2016 Index Highlights
2. SF Markets Monthly Index Highlights: September 2016
3. SF Markets Monthly Index Highlights: August 2016
4. SF Markets Monthly Index Highlights: July 2016
5. SF Markets Monthly Index Highlights: June 2016
6. SF Markets Monthly Index Highlights: April 2016
7. SF Markets Monthly Index Review for March 2016