Wednesday, November 02, 2016 2:52pm/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: October Highlights
· All (NGN) equity indices had negative returns for the month of October. The best performing index for the month was the SFNG Micro Cap Index, which returned -0.19% compared to -0.29% in September.
· Volatility for the SFNG Blue-Chip 30 Index in October was at 10.21% (up from 6.43% in September).
· Currency Indices: The SFNG Blue-Chip 30 Index (USD) was down 3.41% while the SFNG Blue-Chip Index (EUR) was down 2.15% for the month of October.
· The SFNG Total Share Index (representing 99.5% of the Nigerian equity market) had a 3.95% decrease in total market capitalisation from NGN 9.70trn (September) to NGN 9.32trn (October) while the free-float market capitalisation for the index decreased by 3.35% from NGN 3.5trn (September) to NGN 3.4trn (October).
· Using the 6 month Average Daily Traded Value (ADTV) measure, liquidity for the SFNG Total Share Index in October came in at NGN 2.48bn (an increase from the NGN 2.42bn recorded in September).
·In October, 5 companies in the SFNG Total Share Index had dividends (four cash and one special) go ex, compared to 6 companies in September. The dividend yield for the index in October came in at 5.92% compared to 5.78% in September.
· All sectors in the SFNG Total Share Index had negative returns for the month of October.
· The best performing sector was Consumer Optional (-0.16%) while the worst performing sector was Healthcare (-20.55%)
Top 5 Performers
· The best performing stock in the SFNG Total Share Index for the month of October was Caverton Offshore Support Group Plc (44.74%) while the worst performing stock was Forte Oil Plc (-27.67%).
Fixed Income: October Highlights
· The Alpha Bond Index returned 0.52% in October while the Alpha Bond Index (USD) returned 0.53%.
· Volatility for the Alpha Bond Index in October was at 3.77% (down from the 6.62% recorded in September).
· The market value of the Alpha Bond Index increased by 6.26% from NGN 5trn in September to NGN 5.32trn in October. The market value of the index represents 5.64% of Nigeria’s GDP.
· For the month of October, the Alpha Bond Index had an Average Weighted Coupon of 13.24% (13.19% in September) and an Average Weighted Maturity of 8.98 years (9.17 years in September).
· In October, the Average Weighted Coupon rate of the Alpha Bond Index came in at 0.74 points (i.e. 26%) 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 15.19% in September to 15.28% in October.
· One bond in the Alpha Bond Index had a coupon payment in October.
· There was a new addition to the Alpha Bond Index in October i.e. the 14.50 FGN 15-JUL-2021, increasing the component number of the index to 13. The bond was added due to its “Amount Outstanding” going above NGN 150bn.
1. SF Markets Monthly Index Highlights: September 2016
2. SF Markets Monthly Index Highlights: August 2016
3. SF Markets Monthly Index Highlights: July 2016
4. SF Markets Monthly Index Highlights: June 2016
5. SF Markets Monthly Index Highlights: April 2016
6. SF Markets Monthly Index Review for March 2016