Saturday, January 26, 2019 08:00 AM / Proshare Content
Nigeria: Economic Dashboard @ 250119
Source: Vetiva Weekly Market Wrap - January 25, 2019
NSE ASI extends positive trend, erases YTD losses
• After recording gains in four out of five sessions, the ASI posted another positive w/w return, gaining 141bps and erasing YTD losses to 0.01%. Sector-wise, the Banking sector (+410bps d/d, 715 w/w) was the best performer for the day and week following upticks in DIAMOND (+10.00% d/d, w/w), ZENITH (+698bps w/w) and GUARANTY (+798bps w/w). Though unable to erase earlier losses, the and Oil & Gas (+168bps d/d, -132bps w/w) and Industrial Goods (+49bps d/d, -202bps w/w) sectors were in positive territory on Friday thanks to OANDO (+211bps d/d) and DANGCEM (+104bps d/d). Contrarily, the Consumer Goods sector (14bps d/d, -41bps w/w) was the sole loser on the day after declines in PZ (-464bps d/d, w/w) and UNILEVER (-122bps d/d, w/w) dragged the sector.
• While the strong gains from this week create a high chance for bargain hunting across select stocks, we believe trading activities will remain tilted towards buying as more investors begin to take positions in beaten down stocks in anticipation of a dispersion in political clouds postelections.
• Stock Watch: FCMB gained 22% w/w after gaining in all five sessions this week. The stock recorded an almost 10% gain in today’s session to close at ?2.15, its highest price since July 2018, and is up 14% YTD (Banking sector: +2% YTD).
Treasury bills remains bullish amidst liquidity constraints
• This week, the CBN sold ?787 billion (?1.35 trillion offered) across five OMO auctions every day this week at 11.90%, 13.50% and 15.00% across the short, mid and long term maturities. Notably, the DMO released the long-awaited January Bond Auction Circular by Wednesday indicating an offer of ?150 billion across the 5-year, 7-year and 10-year maturities at next week’s auction. Meanwhile, the Interbank Call rate declined 325bps w/w to close at 12.08%.
• Despite the mop ups and the constrained system liquidity, trading in the treasury bills market remained positive with yields declining 59bps w/w (-5bps d/d). Particularly, yields on the 34DTM and 132DTM bills declined 202bps and 245bps respectively to settle at 12.21% and 12.73%. Meanwhile, trading in the bond space turned mixed, with no movement on average yields w/w. Specifically, whilst yields on the 16.2884% FGN MAR 2027 bond advanced 10bps to settle at 15.14%, the 12.40% 18MAR 2036 bond declined 10bps to close at 15.32% respectively.
• Whilst we anticipate tepid trading in the T-bills space due to liquidity constraints, we foresee modest sell-offs in the bond space as investors prepare to partake in the bond auction scheduled for Wednesday.
• The Naira appreciated ?0.33 w/w at the I&E FX Window to settle at ?362.46 against the dollar and depreciated ?2.00 w/w to settle at ?362.50 in the parallel market.
• We expect the naira to remain largely stable across the various windows of the currency space as the CBN maintains interventions in the FX market.
Sunday, January 27, 2019
The Nigeria National Petroleum Corporation (NNPC) will on this day hold the Nigeria International Petroleum Summit at the International Conference Centre, Abuja, Nigeria.
Monday, January 28, 2019
The National Bureau of Statistics will on this day release the Daily Energy Generated and Sent out Report for Q4 2018 and the Transport Fare Watch (December 2018) while the Nigerian Economic Summit Group will on this day hold the NESG Macroeconomic Outlook Forum at the NESG Summit House, Ikoyi
Tuesday, January 29, 2019
The African Newspaper of Nigeria Plc will on this day hold the Unveiling of the New look Tribune and a Symposium at Sheraton Hotel, Lagos while the Lagos Chamber of Commerce and Industry will on this day hold the 2019 Security Meets Business Dialogue at the Commerce House, 1 Idowu Taylor Street Victoria Island Lagos
Wednesday, January 30, 2019
The National Bureau of Statistics will on this day release the National Survey on Drug use in Nigeria 2017/18
Thursday, January 31, 2019
The South Africa Chamber of Commerce will on this day hold the 2019 Breakfast Forum at the Orchid Hall, Eko Hotel, Lagos while Vantage Forum 2019: A Business & Economic Outlook Event will hold on the same day at PISTIS Conference Centre, Jakande, Lekki, Lagos.
InfoWARE Limited in partnership with AFEX Commodities Exchange Limited will on this day hold the CEO Meets at Idera Hall, Radisson Blu Hotel, 1a, Ozumba Mbadiwe Avenue, Victoria Island, Lagos.
Friday, February 01, 2019
Stanbic IBTC will on this day hold the 2019 Youth Leadership Series while First City Monument Bank will on same day hold the FREE Study Abroad Seminars at Sheraton Hotel & Towers, Ikeja, Lagos State. Data Science Nigeria will on this day hold a “Terragon Hackathon on Look-Alike Challenge”.
Proshare Nigeria will on this day host representatives of AFEX Commodities Exchange Limited for a content & data partnership signing ceremony.
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