The continuous downturn at the Nigerian Stock Exchange threatens the much anticipated recovery.
EQUITIES
Trading activities in the domestic equities market kicked off the week on a negative note as profit-taking activities witnessed in GTCO (-4.2%) caused a 0.4% decline in the benchmark index. Thus, the All-Share Index closed at 103,047.23 points. Accordingly, the Month-to-Date and Year-to-Date returns settled at -1.5% and +37.8%, respectively, market analysts at Cordros Research noted in their report.
The total volume traded declined by 82.3% to 397.84 million units, valued at NGN7.06 billion, and exchanged in 9,407 deals. ABBEYBDS was the most traded stock by volume at 137.21 million units, while GTCO was the most traded stock by value at NGN1.55 billion.
Across the sectors, the Banking (-2.7%) and Consumer Goods (-0.3%) indices declined, while the Industrial Goods, Insurance and Oil & Gas indices closed flat.
As measured by market breadth, market sentiment was negative (0.8x) as 22 tickers lost relative to 17 gainers. ABBEYBDS (-9.8%) and CHAMPION (-9.7%) recorded the highest losses of the day, while MORISON (+9.9%) and OMATEK (+7.7%) topped the gainers’ list.
CURRENCY
The naira depreciated by 1.7% to NGN1,230.61/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 331bps to 26.3%, in the absence of any significant outflow from the system.
Trading in the NTB secondary market was mixed, albeit with a bullish tilt, as the average yield pared by 1bp to 18.9%. Across the curve, the average yield contracted at the short (-2bps) and mid (-3bps) segment following buying interests in the 80DTM (-2bps) and 171DTM (-3bps) bills, respectively but closed flat at the long end. Elsewhere, the average yield declined by 16bps to 18.2% in the OMO segment.
Similarly, proceedings in the Treasury bond secondary market were bullish, as the average yield declined by 2bps to 19.2%. Across the benchmark curve, the average yield pared at short (-1bp) and long (-10bps) end as investors demanded the FEB-2028 (-47bps) and FEB-2031 (-17bps) bonds, respectively. Meanwhile, the average yield closed flat at the long end.
