Market closed negative
Aligning with our outlook, 2017Q2 corporate results have since reflected positive surprises across the leading sectors. Thus, Blue chips including: NB (+24.61% PAT growth), ZENITH (+112.38% PAT growth), GUARANTY (+16% PAT growth), DANGCEM (+39.28% PAT growth) and Just yesterday UBA (+56.19% PAT growth) corroborate to this narrative, even as FBNH logged a -19% PAT growth to N28.7bn.
Despite this, the local equity index closed negative yesterday, shedding 1.30% to close at 36,575.86. ZENITHBANK and ACCESS slid 1.7% and 2.2% respectively, to depress the Financials gauge by -0.41%. Valuation becomes increasing more attractive for long term positions. Overall, market breadth closed negative (0.65x Advance/Decliner’s ratio - 17 advancers vs. and 26 Decliner’s) – a strong signal to extended haircut in the session ahead.
Broad market P/E and Dividend Yield closed at 11.8x and 3.8%, respectively.
Market activity level depreciated
Aggregate value traded depreciated by 0.70% yesterday as investors exchanged 238 million shares worth N5.492 billion in 4,162 deals. GUARANTY buoyed activities in the Financial Service sector, closing as the most active counter; and was the most traded stock, representing 53% of aggregate transaction size. The top ten stocks constituted 92% of market turnover.
UBN topped the gainer’s chart
UBN closed atop the gainers’ table yesterday with a notable 5.08% gain. On the flipside, MRS shed 6.02% to lead the loser’s chart. Other top gainers for the day include NEIMETH (5.00%), AIICO (4.85%) and SKYEBANK (4.73%), while CUSTODYINS, MOBIL and PRESCO tanked -5.00%, -5.00% and -4.99% accordingly.
Fixed income Market
Yields on the 5yr and 7yr benchmark bond were flat at 16.37% and 16.40% respectively while the yield 10yr benchmark bonds expanded by 31bps to 16.84%. Furthermore, the yields on the March 2036 and April 2037 surged by 40bps and 37bps to 16.78% and 16.86% respectively.
CBN sold close to N22bn worth of OMO bills at 17.95% and 18.95% stop rates as it continued to squeeze system liquidity. However, the Open Buy Back and Overnight rates fell to 9.50% and 10.08%, from 91.67% and 96.00% respectively as N96bn worth of OMO bills matured yesterday.