Wednesday, May 04, 2016 07:56 PM / ScottFree Markets
The April 2016 month-end factsheets for the SF Markets equity and fixed income indices is not out.
We have also provided some index highlights below for the month of April. We hope this can be a valuable source to you, giving a comprehensive overview of how the Nigerian markets (both equity and fixed income) have performed over the last month.
SF Markets: April 2016 Index Highlights
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.
- It was a mixed month for the (NGN) equity indices, with positive returns for the large and mid-cap stock indices but negative returns for the small and micro-cap stock indices. The best performing index for April was the SFNG Blue-Chip 30 Index, which returned 3.19% compared to -1.89% last month.
- Currency Indices: The SFNG Blue-Chip 30 Index (USD) and the SFNG Blue-Chip Index (EUR) both returned similar figures for the month of April, coming in at approximately 3.26%.
- Volatility for the SFNG Blue-Chip 30 Index (Large Cap stocks) in April was at 14.81% (down from 19.99% in March).
- The SFNG Total Share Index (representing 99.5% of the Nigerian equity market) had a 0.97% decrease in total market capitalisation from NGN 8.66trn (Mar) to NGN 8.57trn (Apr) while the free-float market capitalisation for the index increased by 2.84% from NGN 2.96trn in March to NGN 3.04trn in April.
- Liquidity in the market continues to suffer with the 6 month Average Daily Traded Value (ADTV) for the SFNG Total Share Index continuing its downward spiral in April, coming in at NGN 2.19bn (a decrease from NGN 2.40bn in March). The ADTV figures have now decreased every month for the last 9 months.
- It was a busy month in April with 18 companies in the SFNG Total Share Index paying dividends compared to the 8 paid in March. The dividend yield for the index is at 4.12% in April compared to 4.13% in March. In addition, there was just one corporate action i.e. the bonus issue for Transnational Corporation of Nigeria PLC effective during the month of April.
The only sector in the SFNG Total Share Index that had a positive return for the month of April was Financials. All other sectors either had a negative return or were unchanged.
The best performing stock in the SFNG Total Share Index for the month of April was E-Tranzact International PLC (49.44%) while the worst performing stock was Law Union and Rock Insurance PLC (-31.51%)
- The market value of the Alpha Bond Index decreased by 0.1% from NGN 5.516trn (Mar) to NGN 5.510trn (Apr). The market value of the index represents 4.85% of Nigeria’s GDP.
- There was a new addition to the Alpha Bond Index in April i.e. the 12.50 FGN 22-JAN-2026 (10-Year bond issued by the DMO in January 2016), increasing the component number of the index to 12.
- The Alpha Bond Index returned -2.64% in April with the Alpha Bond Index (USD) displaying slightly lower returns at -2.79%.
- Volatility for the Alpha Bond Index was at 6.94% (down from 7.24% in March).
- The Alpha Bond Index had an Average Weighted Coupon of 13.39% in April (13.40% in Mar) and an Average Weighted Maturity of 8.53 years in April (8.60 years in Mar).
- The Average Weighted Coupon rate of the Alpha Bond Index came in at 1.05 points (i.e. 5%) above 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 11.72% in March to 12.68% in April.
- Two bonds in the Alpha Bond Index had coupon payments in April.
If you have any questions or need additional information, please do not hesitate to contact :
Scottfree Markets: Amonire Rewane
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