Thursday, June 02, 2016 03:56 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: May Highlights
• It was a better month for the (NGN) equity indices, with all indices having positive returns. The best performing index for May was the SFNG Blue-Chip 30 Index, which returned 16.36% compared to 3.19% in April.
• Currency Indices: The SFNG Blue-Chip 30 Index (USD) returned 16.36% while the SFNG Blue-Chip Index (EUR) returned 19.65% for the month of May.
• Volatility for the SFNG Blue-Chip 30 Index (Large Cap stocks) in May was at 33.76% (up from 14.81% in April).
• The SFNG Total Share Index (representing 99.5% of the Nigerian equity market) had a 10.43% increase in total market capitalisation from NGN 8.57trn (Apr) to NGN 9.47trn (May) while the free-float market capitalisation for the index increased by 15.18% from NGN 3.04trn in April to NGN 3.51trn in May.
• Using the 6 month Average Daily Traded Value (ADTV) measure, liquidity for the SFNG Total Share Index in May came in at NGN 2.08bn (a decrease from NGN 2.19bn in April).
• In May, 12 companies in the SFNG Total Share Index had dividends go ex, compared to 18 companies in April. The dividend yield for the index in May came in at 4.98% compared to 4.12% in April. In addition, there were also 6 deletions from the SFNG Total Share Index during the month of May as depicted in the table below:
(TRBC is provided by Thomson Reuters)
• Barring the Technology and Healthcare sectors which both had negative returns, and Telecommunication Services which was unchanged, all other sectors in the SFNG Total Share Index had positive returns for the month of May
Top 5 Performers
Top 5 Performers
Worst 5 Performers
• The best performing stock in the SFNG Total Share Index for the month of May was FCMB Group PLC International PLC (71%) while the worst performing stock was Caverton Offshore Support Grp PLC (-19.08%)
Fixed Income: May Highlights
• The Alpha Bond Index returned -1.48% in May while the Alpha Bond Index (USD) returned -1.47%.
• Volatility for the Alpha Bond Index in May was at 12.22% (nearly double the 6.94% recorded in April).
• The market value of the Alpha Bond Index increased by 0.38% from NGN 5.510trn (Apr) to NGN 5.532trn (May). The market value of the index represents 4.86% of Nigeria’s GDP.
• For the month of May, the Alpha Bond Index had an Average Weighted Coupon of 13.39% (unchanged from Apr) and an Average Weighted Maturity of 8.46 years (8.53 years in Apr).
• In May, the Average Weighted Coupon rate of the Alpha Bond Index came in at 0.98 points (i.e. 2%) below Nigeria’s inflation rate and 1.12 points (i.e.12%) above Nigeria’s interest rate.
• The Yield to Maturity of the index increased from 12.68% in April to 13.53% in May.
• Three bonds in the Alpha Bond Index had coupon payments in May.
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