EQUITIES
The domestic stock market reversed yesterday’s gains as losses in OANDO (-8.7%) undermined market performance. Thus, the All-Share Index dipped by 0.1% to close at 95,832.29 points. Accordingly, the Month-to-Date and Year-to-Date returns moderated to -2.0% and +28.2%, respectively.
The total volume of trades declined by 65.3% to 351.75 million units, valued at NGN7.11 billion, and exchanged in 8,677 deals. OANDO was the most traded stock by volume and value at 66.23 million units and NGN2.69 billion, respectively.
From a sectoral perspective, the Banking (-0.3%), Insurance (-0.1%) and Oil & Gas (-0.1%) indices recorded losses while the Industrial Goods (+0.1%) index inched higher. Meanwhile, the Consumer Goods index closed flat.
As measured by market breadth, market sentiment was positive (1.4x), as 25 tickers gained relative to 18 losers. IKEJAHOTEL (+10.0%) and RTBRISCOE (+9.8%) topped the gainers’ list, while UPL (-9.4%) and OANDO (-8.7%) recorded the highest losses of the day.
CURRENCY
The naira appreciated by 3.1% to NGN1,543.84/USD in the Nigerian Autonomous Foreign Exchange Market (NAFEM).
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 776bps to 26.6%, despite the net FGN bond settlement (NGN127.48 billion).
The T-bills secondary market activities turned bearish as the average yield expanded by 6bps to 23.0%. Across the curve, the average yield expanded at the short (+94bps) end following profit-taking on the 15DTM (+158bps) bill but contracted at the mid (-50bps) and long (-18bps) segments as participants demanded the 155DTM (-119bps) and 246DTM (-195bps) bills, respectively. Conversely, the average yield contracted by 8bps to 25.7% in the OMO segment.
Meanwhile, proceedings in the FGN bond secondary market was mixed but with a bullish tilt, as the average yield pared by 1bp to 19.4%. Across the benchmark curve, the average yield closed flat at the short end but declined at the mid (-6bps) segment due to buying interests in the FEB-2031 (-15bps) bond. Conversely, the average yield expanded slightly at the long (+1bp) end driven by sell pressures on the JUNE-2053 (+7bps) bond.
