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Saturday, February 02, 2019 08:00 AM / Proshare Content
Nigeria: Economic Dashboard @ 010219
Editor’s Pick
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, Annex; while the Franco-Nigerian Chamber of Commerce and Industry will on this day hold the Business Breakfast Meeting at IRIS Hall, Eko Hotel and Suites Victoria Island, Lagos.
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)
Check out our Events Calendar for event details and follow us on Web, TV, APP and Social Media for updates as the week unfolds. Yours to Serve!
Contact for Details:
For further information, enquiry or submission of information, kindly email market@proshareng.com and research@proshareng.com Tel: 0700PROSHARE (070077674273). Call us NOW!
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