Saturday, February 02, 2019 08:00 AM / Proshare Content
Nigeria: Economic Dashboard @ 010219
Source: Vetiva Weekly Market Wrap - February 01, 2019
February starts on a mildly positive note, ASI up 26bps
• Following successive negative performances in four out of five sessions, the ASI posted a mildly positive day on Friday, gaining 26bps d/d, albeit down 2.51% w/w. Meanwhile, the Banking sector (+195bps d/d, -247 w/w) recorded the only green close today, thanks to upticks in UBA (+515bps d/d, -714bps w/w) and ZENITH (+200bps d/d, -22bps w/w). On the other hand, the Industrial Goods sector (-367bps w/w) was the biggest loser for the day and week following declines in CCNN (-833bps d/d, w/w) and WAPCO (-80bps d/d, w/w). Similarly, the Oil & Gas (42bps d/d) and Consumer Goods (-20bps d/d) sectors shed points after losses in SEPLAT (-185bps w/w), DANGFLOUR (-10.17% w/w) and NESTLE (-206bps w/w).
• In line with trend in the past few weeks, we see the possibility of a recovery in the market next week driven by bargain hunters. That said, though we expect cautious sentiment to remain prevalent ahead of the elections, we foresee select fund managers taking positions in beaten down stocks as the elections draw closer.
• Stock Watch: DANGFLOUR lost 3% today to bring its losses this week to 11%. The stock recorded red closes in three out of five sessions and is currently trading at ₦5.80, down 15% YTD (Consumer Goods sector: -7% YTD).
Demand persists in FI market despite tightened liquidity
• This week, the CBN sold ₦536 billion (₦750 billion offered) across three OMO auctions at 11.90%, 13.50% and 15.00% across the short, mid and long term maturities. Similarly, a T-bills PMA was also conducted selling ₦255 billion at stop rates of 11.00%, 13.50% and 15.00%. Meanwhile, the DMO conducted the January Bond Auction offering ₦150 billion, selling ₦117 billion across the 5-yr, 7-yr and 10-yr maturities. Nonetheless, the Interbank Call rate declined 426bps w/w to 11.07%.
• Despite the mop ups and lower system liquidity, trading in the treasury bills market remained positive with yields declining 41bps w/w (-25bps d/d). Particularly, yields on the 48DTM and 216DTM bills declined 158bps and 90bps w/w respectively to settle at 9.74% and 14.65%. Meanwhile, trading in the bond space was also positive, with average yields on benchmark bonds moderating 34bps w/w (-17bps d/d). Specifically, yields on the 13.98% FGN FEB 2028 and 12.40% FGN MAR 2036 bonds declined 42bps and 20bps w/w to close at 15.04% and 15.07% respectively.
• Despite constant liquidity tightening by the CBN during the week, demand for T-Bills has remained fairly upbeat, thus we expect yields to decline further at the start of the week, albeit marginally. In the bonds space, we foresee further mixed trading with a slant towards buy-side activity.
• The Naira depreciated ₦0.25 w/w at the I&E FX Window to settle at ₦362.71 against the dollar and appreciated ₦2.50 w/w to settle at ₦360.00 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.
Monday, February 04, 2019
The Emerging Africa Capital Group will on this day launch the book Riding The Eagle - A Guide to Investing in Nigeria by Mrs Oluwatoyin SANNI at the Nigeria Stock Exchange Lagos.
Tuesday, February 05, 2019
Business Day Nigeria will today host the Inclusion for All: Making Financial Inclusion a reality for Nigeria Seminar as part engagements under the Social Media Week 2019 at the Landmark Event Center, Plot 2 & 3, Water Corporation Drive, Victoria Island, AnnexFranco-Nigerian Chamber of Commerce and Industry
The CIBN Centre for Financial Studies will on this day hold a Roundtable Session on the Economic Outlook at the Oriental Hotel 3, Lekki- Epe Expressway Victoria Island, Lagos.
Wednesday, February 06, 2019
The National Bureau of Statistics will on this day release the Telecoms Data: Active Voice and Internet per State, Porting and Tariff Information (Q3 & Q4 2018) while NEIMETH International Pharmaceuticals Plc will hold its Annual General Meeting at Oranmiyan Hall, Lagos Airport Hotel Limited, 111 Obafemi Awolowo Way, Ikeja, Lagos
The AFEX Commodities Exchange Limited will on this day hold the Code Cash Crop Engagement at the Landmark Event Centre; while Tech Point Build will on the same day and venue hold the Building for the Next Billion Users.
Thursday, February 07, 2019
The Nigerian-American Chamber of Commerce will on this day hold A Breakfast Meeting at the Lagos Oriental Hotel, 3, Lekki Road, Victoria Island, Lagos while The NASD Stakeholders Meeting will hold on the same day at La Scala Restaurant Lagos.
Saturday, February 09, 2019
The National Bureau of Statistics will on this day release the Pension Asset and Membership Data (Q4 2018)
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