EQUITIES
The domestic bourse opened the week in the red as profit-taking activities in TRANSCORP (-3.9%) and sell pressures on FBNH (-5.6%) drove the All-Share Index lower by 0.1% to 105,367.25 points. As a result, the Year-to-Date return printed +2.4%.
The total volume of trades declined by 65.9% to 505.80 million units, valued at NGN8.13 billion, and exchanged in 14,259 deals. TANTALIZER was the most traded stock by volume at 48.00 million units, while GTCO was the most traded stock by value at NGN1.42 billion.
On sectors, the Insurance (-2.7%), Banking (-0.4%) and Consumer Goods (-0.2%) indices declined, while the Oil & Gas (+0.3%) index advanced. The Industrial Goods index remained unchanged.
As measured by market breadth, market sentiment was negative (0.7x), as 33 tickers lost relative to 24 gainers. LASACO (-10.0%) and NNFM (-10.0%) posted the most significant losses of the day, while CAP (+10.0%) and NEIMETH (+10.0%) topped the gainers’ list.
CURRENCY
The naira depreciated by 0.4% to NGN1,548.89/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 473bps to 32.6% in the absence of any significant funding pressure on the system.
Activities in the NTB secondary market were bearish, as the average yield expanded by 2bps to 25.2%. Across the curve, the average yield expanded at the short (+9bps) and long (+1bp) ends, following sell pressures on the 42DTM (+92bps) and 315DTM (+62bps) bills, respectively, but contracted at the mid (-5bps) segment due to the demand for the 147DTM (-6bps) bill. In contrast, the average yield contracted by 6bps to 27.8% in the OMO segment.
The Treasury bond secondary market traded with bearish sentiments, as the average yield expanded by 3bps to 19.5%. Across the benchmark curve, the average yield advanced at the short (+7bps) and mid (+5bps) segments following selloffs of the APR-2029 (+20bps) and JUL-2030 (+13bps) bonds, respectively. The average yield closed flat at the long end.
