A Tale of two markets – Capital Market Review November 2020

Must Read

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...
- Advertisement -

The Nigerian capital market witnessed a historic month on two fronts buoyed by increased system liquidity in the past month. Daily OBB and ONN rates remained low amid buoyant system liquidity.

In November 2020, the equity market posted its best monthly gain in 2020, up 14.8%m/m. November’s performance was the highest m/m return since January 2018 rally when the market posted 15.9%, sending the Index past 42,000 index points.

That rally was bolstered by increased liquidity emanating from the creation of the NAFEX (I&E windows) which peaked in Q1-2018. The recent Nov-2020 rally was mostly led by increased system liquidity resulting from an easing policy stance and a low yield environment.

Notably, Treasury yields had crashed and reached all-time lows at the first Primary Market Auction of the month. At the second auction and most recent PMA last year, rates were further depressed with the one-year paper stop rate closing at 0.15%.

The low yield environment in the short-term treasury reflected in the bond space, as average yields declined by 20bps to 3.08%. Investor’s appetite remained for long term Nigerian government instruments.

Read Also:  What does an Issuing House Do?
- Advertisement -

Although we have observed profit-taking in the equities market since the second week of November, we expect the increased system liquidity (N1.7trn of incoming OMOs maturities in December) to buoy demand for equities in December.

We also expect rates for treasuries barring any policy change to dampen further.

- Advertisement -
A Tale of two markets - Capital Market Review November 2020 - Brand SpurA Tale of two markets - Capital Market Review November 2020 - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Read Also:  Akeredolu calls for investment in Capital Market in Ondo State

This site uses Akismet to reduce spam. Learn how your comment data is processed.

A Tale of two markets - Capital Market Review November 2020 - Brand SpurA Tale of two markets - Capital Market Review November 2020 - Brand Spur

Latest News

Allianz Risk Barometer 2021: Covid-19 trio tops global and Asia Pacific business risks

10th Allianz survey: Business interruption, Pandemic outbreak and Cyber incidents are the top three global business risks for 2021 -- all strongly interlinked. Globally, Pandemic...

VP Bank in Singapore Awarded Best Private Bank in Asian Private Banker Awards for Distinction 2020

HONG KONG SAR - Media OutReach - 18 January 2021 - VP Bank Ltd Singapore Branch has been awarded 'Best Private Bank --...

Amazon to host first Southeast Asia Seller Summit for small and medium-sized businesses to Start Local, Go Global

The two-day complimentary virtual event focuses on empowering small and medium-sized businesses to develop strategies and skills to reach more customers locally and globally SINGAPORE...

PropertyGuru Tackles Top Home Loan Refinancing Misconceptions Among Singaporeans in New Research

45% of Singaporeans feel unwise to refinance within lock-in period, a top home loan misconception hampering opportunities to save money  SINGAPORE - Media OutReach - 18 January...

Local Equities Market Falls by 0.23% amid Renewed Bearish Activity

Nigeria’s equities benchmark index fell today by 0.23% to 40,963.14 points. Year to date return and market capitalization settled at 2.02%, and N21.41 trillion...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -A Tale of two markets - Capital Market Review November 2020 - Brand SpurA Tale of two markets - Capital Market Review November 2020 - Brand Spur