Local Equities Market Falls by 0.23% amid Renewed Bearish Activity

Investors’ gained ₦350.15 billion w/w to restore YTD performance indicator to a positive region
Afolabi Sotunde Illustration Naira

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 respectively. Market performance was primarily weighed down by DANGCEM NL which shed 2.40% to N234.60.

Volume traded rose by 51.87% to 1.01 billion units as value traded dropped by 31.33% to N4.39 billion the most traded stocks by volume were LIVING TRUST NL (272.00 million units), JAPAULGOLD NL (92.36 million units) and UNIVINSURE NL (51.78 million units), while ZENITHBA NL (N820.12 million), GUARANTY NL (N422.02 million) and ACCESS NL (N302.96 million) topped the value chart.

The sectorial performance was mixed as the NSE banking, Oil & Gas and Insurance sectors rose by 1bps, 2bps, and 598bps, respectively as the consumer goods, and industrial sectors fell by 62bps, and 43bps, respectively.

Market sentiment was positive as market breadth came in at 1.60x with 37 advancers and 23 decliners.

Money Markets

Funding rates hovered around reference rates on fairly robust system liquidity estimated at N374.62 billion.

We expect interbank rates to hover around current levels in the absence of any funding obligations.

Treasury Bills Market

Yields in the NTB market fell on demand seen at the long end of the curve. Average benchmark yields settled at 8bps lower to 0.39%.

We expect a quiet NTB market tomorrow as yields in the market remain unattractive.

FGN Bond Market

The FGN bond market started the week on a bearish note as selloff at the midpoint of the curve pulled average benchmark yields up by 8bps to 7.04%.

We expect the market to continue to trade cautiously ahead of the first bond auction of the year

FGN Eurobond Market

Record COVID-19 cases continue to weigh in on investor sentiment on FGN Eurobonds. Average benchmark yields rose by 9bps to 6.32%

We expect the market to trade on developments around crude oil prices and prices as well as COVID-19 related news.

Foreign Exchange Market

The Naira appreciated against the US Dollar by 21bps to $1/N393.83 at the investors and exporters window. At the parallel market, the local currency closed flat at $1/N475.00.