Money Market

Bears Dominate Again

The local bourse reversed yesterday’s gain as sustained profit-taking activities in GTCO (-3.9%) caused a 0.1% decline in the NGX ASI to 99,845.10 points. Accordingly, the Month-to-Date and Year-to-Date returns settled at -4.5% and +33.5%, respectively.

The total volume traded declined by 11.4% to 285.90 million units, valued at NGN5.54 billion, and exchanged in 7,719 deals. ACCESSCORP was the most traded stock by volume at 43.98 million units, while GTCO was the most traded by value at NGN1.14 billion.

From a sectoral perspective, the Banking (-0.6%) index declined, while the Consumer Goods (+0.4%) index advanced. The Insurance, Industrial Goods and Oil & Gas indices closed flat.

As measured by market breadth, market sentiment was negative (0.9x), as 17 tickers lost relative to 16 gainers. UCAP (-9.7%) and CWG (-9.5%) recorded the highest losses of the day, while GUINNESS (+10.0%) and NEIMETH (+9.8%) topped the gainers’ list.

The naira depreciated by 7.1% to NGN1,154.08/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM).

The overnight lending rate contracted by 204bps to 31.3% following the inflow from FGN bond coupon payment (NGN145.98 billion).

The NTB market traded with bearish sentiments as the average yield expanded by 45bps to 19.3%. Across the curve, the average yield pared at the short (-1bp) and mid (-1bp) segments due to mild interest on the 84DTM (-1bp) and 161DTM (-1bp) bills, respectively, but expanded at the long (+91bps) end as participants sold off the 322DTM (+305bps) bill. Elsewhere, the average contracted by 1bp to 18.5% in the OMO segment.

Proceedings in the Treasury bond secondary market was mixed but with a bearish bias, as the average yield increased slightly by 1bp to 19.2%. Across the benchmark curve, the average yield expanded at the short (+1bp) and mid (+3bps) segments due to profit-taking activities on the MAR-2027 (+1bp) and JUN-2033 (+10bps) bonds, respectively. Meanwhile, the average yield closed flat at the long end.

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