Proceedings in the Nigerian equities market turned positive on Tuesday, with the All-Share Index (ASI) gaining 0.68 per cent to close at 31,007.25 points, effectively wiping off the previous session’s loss.
Consequently, the Month-to-Date returns turned positive at 0.43 per cent, while the Year-to-Date loss moderated to -18.92 per cent.
On sectoral performance, gains across the Banking (+2.62), and Insurance (+0.67%) indices largely neutered modest declines in Industrial (-0.94%) and Consumer Goods (-0.13%) indices.
The Banking index was driven by interest across Tier-1 banks — GUARANTY (3.75%), UBA (+6.67%) and ZENITHBANK (+1.69%) — while marked gains in MANSARD (+9.89%) drove the positive return in the Insurance index.
On the flip side, losses in WAPCO (-4.48%) and NB (-0.50%) weighed on the Industrial and Consumer Goods indices. The Oil & Gas index was flat.
Market breadth was positive with 24 gainers and 14 losers, led by MANSARD (+9.89%) LINKASSURE (-9.68%) shares respectively.
Total volume and value of trades declined by 20.5 per cent and 22.2 per centto 198.54 million units and NGN2.12 billion respectively, exchanged in 2,802 deals.
Analysts at Cordros Capital has to say about the market: “We reiterate our negative outlook for the equities market in the short to medium term, amidst political concerns ahead of the 2019 elections and the absence of a positive market trigger. However, positive macroeconomic fundamentals remain supportive of recovery in the long term”.
In the Currency market, the naira weakened against the dollar by 0.17 per cent to NGN364.63 in the I&E FX window, while it remained flat at NGN370 in the parallel market.
Total turnover at the IEW declined by 94 per cent to USD24.01 million, with total trades consummated within the NGN362.50-NGN365.50 band.
The overnight lending rate rose by 183 bps to 9.50 per cent at the Fixed Income and Money Market as the CBN mopped up excess liquidity via OMO auction, selling a total of NGN94.50billion — NGN10.77 billion of the 191DTM and NGN83.73 billion of the 324DTM — worth of bills, at respective stop rates of 13.50 per cent, and 15.00 per cent.
Proceedings in the NTB market were bearish, following the liquidity mop-up, as average yield widened by 13 bps to 15.16 per cent. There were selloffs across the short (+17 bps), mid (+27 bps), and long (+2 bps) segments, with respective yields on the 149DTM (+154 bps), and 359DTM (+17 bps) bills expanding.
In the bond market, bearish sentiments persisted, as average yield climbed 4 bps to 15.51 per cent. Sell pressure was concentrated at the short (+9 bps) and long (+5 bps) ends of the curve, with respective yields on the JUN-2019 (+74 bps) and MAR-2037 (+16 bps) bonds recording expansions. Yield at the mid segment was flat.