Saturday, February 09, 2019 08:00 AM / Proshare Content
Nigeria: Economic Dashboard @ 080219
Source: Vetiva Weekly Market Wrap - February 08, 2019
ASI maintains gaining streak, up 292bps w/w
Following five consecutive sessions in positive territory, the NSE ASI gained 2.92% w/w, following a 31bps d/d uptick at week close. Three key sectors closed in the green, with the Oil & Gas sector (+257bps d/d, +254bps w/w) taking the lead thanks to gains in SEPLAT (+575bps d/d, w/w) and ETERNA (+330bps d/d, 10.59% w/w). Similarly, the Consumer Goods (+123bps d/d, +410bps w/w) and Banking sectors (+121bps d/d, +810bps w/w) recorded strong positive performances after upticks in PZ (+752bps d/d, w/w), NESTLE (+204bps d/d, +563bps w/w), UBA (+408bps d/d, +699bps w/w) and GUARANTY (+171bps d/d, +14.69bps). Conversely, the Industrial Goods sector (-173bps d/d, 66bps w/w) was the only loser for the day and week following declines in DANGCEM (-237bps d/d, w/w) and CCNN (-200bps d/d).
• Positive market performance in the market has been driven by bargain hunters with increased activity from both local and foreign players. We expect the positive trend to persist amid sustained interest on select stocks even as investors position to take advantage of a possible postelection rally.
• Stock Watch: DANGFLOUR is the second best performing stock this week, gaining 18% in four out of five sessions. The stock gained 8% today to close at ?6.85, trading at its highest price since March 2018.
Offshore investors drive bullish bond market
• The CBN retained its tight monetary stance this week, notably selling ?644 billion (?550 billion offered) in four OMO auctions this week, even as a ?315 billion OMO maturity also hit the system. Nonetheless, the Interbank Call rate declined 334bps w/w to 18.67%.
• Following a mixed trading week in the T-bills market with see-saw sentiment throughout the week, yields closed flat w/w with no movements recorded on average across the curve. Particularly, whilst the yield on the 34DTM bill declined 126bps w/w to settle at 11.16%, the yield on the 97DTM bill advanced 105bps w/w to settle at 12.32%. Meanwhile, the bond space recorded another significantly positive week, with average yields on benchmark bonds moderating 25bps w/w (-10bps d/d). Notably, market intelligence credits the surge in demand to increased participation from foreign investors, even as FPI proportion of I&E FX window flows have increased from previous months. Specifically, the yields on the 13.98% FGN FEB 2028 and 12.40% FGN MAR 2036 bonds declined 31bps and 47bps w/w to close at 14.47% and 14.61% respectively.
• Whilst we anticipate continued interest in the bond market amidst a resurgence in FPI inflows, we foresee sustained tepid trading in the Tbills market as the CBN maintains pressure on liquidity.
• The Naira appreciated ?0.98 w/w at the I&E FX Window to settle at ?361.73 and ?3.00 w/w to settle at ?359.50 against the dollar 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 11, 2019
Tenol Alpha will on this day hold a training on Risk Management in Abuja, while IBFC Alliance Limited will on the same day hold a seminar on Financial Independence Beyond the Career in Victoria Island, Lagos.
Tuesday, February 12, 2019
The National Bureau of Statistics will on this day release the Nigerian Gross Domestic Product by Output Report (Q4 2018 and Full Year 2018) while Eterna Oil will commemorate its 30th Anniversary at the Nigerian Stock Exchange on the same day.
Wednesday, February 13, 2019
TVC Nigeria will on this day hold the Unveiling of its rebranded TVC News at Ikosi-Ketu Lagos, while the West Africa Trade & Export Finance Conference will hold on the same day at the Eko Hotels & Suites, Lagos.
Thursday, February 14, 2019
The Nigerian American Chamber of Commerce will on this day hold a training on Management Skills & Techniques at Victoria Island Lagos.
Friday, February 15, 2019
The National Bureau of Statistics will on this day release the Automatic Gas Oil (Diesel) Price Watch January 2019, CPI and Inflation Report January 2019, Federation Account Allocation Committee (FAAC) January 2019 Disbursement, Liquefied Petroleum Gas (Cooking Gas) Price watch Jauary 2019, National Household Kerosine Price Watch January 2019. Premium Motor Spirit (Petrol) PRICE WATCH January 2019, SELECTED FOOD PRICES January 2019 and Transport Fare Watch (January 2019)
Saturday, February 16, 2019
The Nigerian General Elections to elect the President and members of the National Assembly will hold on this day across the nation.
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