Friday, September 02, 2016 10:36 AM / ScottFree Markets
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.
Equity: August Highlights
· Apart from the Small Cap Index, all other (NGN) equity indices had negative returns for the month of August. The best performing index for the month was the SFNG Small Cap Index, which returned 0.06% compared to -1.52% in July.
· Volatility for the SFNG Blue-Chip 30 Index (Large Cap stocks) in August was at 11.84% (down from 17.52% in July).
· Currency Indices: The SFNG Blue-Chip 30 Index (USD) was up 2.08% while the SFNG Blue-Chip Index (EUR) was up 1.42% for the month of August.
· The SFNG Total Share Index (representing 99.5% of the Nigerian equity market) had a 1.47% decrease in total market capitalisation from NGN 9.59trn (July) to NGN 9.45trn (August) while the free-float market capitalisation for the index decreased by 1.73% from NGN 3.53trn (July) to NGN 3.47trn (August).
· Using the 6 month Average Daily Traded Value (ADTV) measure, liquidity for the SFNG Total Share Index in August came in at NGN 2.36bn (an increase from the NGN 2.29bn recorded in July).
· In August, 8 companies in the SFNG Total Share Index had dividends go ex, compared to 12 companies in July. The dividend yield for the index in August came in at 6.01% compared to 5.95% in July.
· Please note that the Semi-Annual review for the SFNG Equity Index Series will be carried out in September. The results will be published in the first week of September with the changes effective 19.09.2016.
· The best performing sector in the SFNG Total Share Index for the month of August was Oil & Gas (3.14%) while the worst performing sector was Industrials (-7.59%)
· Barring the Oil & Gas, Consumer Basics and Technology sectors, all other sectors in the SFNG Total Share Index had negative returns for the month of August.
Top 5 Performers
Worst 5 Performers
· The best performing stock in the SFNG Total Share Index for the month of August was Total Nigeria PLC (32.23%) while the worst performing stock was Diamond Bank PLC (-33.96%).
Fixed Income: August Highlights
· The Alpha Bond Index returned 2.10% in August while the Alpha Bond Index (USD) returned 5.30%.
· Volatility for the Alpha Bond Index in August was at 6.70% (down from the 15.15% recorded in July).
· The market value of the Alpha Bond Index increased by 2.37% from NGN 4.763trn in July to NGN 4.876trn in August. The market value of the index represents 5.17% of Nigeria’s GDP.
· For the month of August, the Alpha Bond Index had an Average Weighted Coupon of 13.21% (13.24% in July) and an Average Weighted Maturity of 9.14 years (9.07 years in July).
· In August, the Average Weighted Coupon rate of the Alpha Bond Index came in at 0.77 points (i.e. 23%) below Nigeria’s inflation rate and 0.94 points (i.e.6%) below Nigeria’s interest rate.
· The Yield to Maturity of the index decreased from 15.58% in July to 15.47% in August.
· Only one bond in the Alpha Bond Index had a coupon payment in August.
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