Bulls fight back as Index records 0.33% rise on NSE Tuesday

Proceedings turned positive in the Nigerian equities market on Tuesday as the benchmark index, All-Share Index inched up 0.33 percent, following interest in large cap stocks.

As a result, the Month-to-Date and Year-to-Date losses reduced to 0.96 per cent and 15.92 per cent, respectively.

Returns were mixed across the major sectoral indices, as the Consumer Goods (+1.82%) and Industrial Goods (+0.36%) indices posted positive returns, while the Insurance (-1.11%), Banking (-0.53%), and Oil & Gas (-0.13%) indices closed in the negative.

The respective index movers include NESTLE (+3.62%), CCNN (+9.81%), MBENEFIT (-10.00%), GUARANTY (-1.84%), and OANDO (-0.99%) stocks.

Market breadth remained negative with 23 losers and 13 gainers, led by FIDSON (-10.00%) and CCNN (+9.81%) shares respectively. Total volume of trades dropped 5.18% to 149.65 million units, valued at NGN2.79 billion (+59.55%), and exchanged in 3,063 deals.

“We remain conservative in our 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”. Analysts at Cordros Capital said.

Meanwhile, the USD/NGN remained flat in the parallel market at NGN362, while it appreciated by 0.03 per cent to NGN363.54 in the I&E FX window. Total turnover in the IEW was 58.00percent lower in yesterday’s session, at USD97.13 million, compared to the previous session.

The overnight lending rate rose by 183 bps to 5.42 in the fixed income market, as the CBN mopped up excess liquidity via OMO auction, selling a total of NGN316.23 billion — NGN210 million of the 121DTM, NGN73.30 billion of the 184DTM, and NGN242.72 billion of the 338DTM — worth of bills, at respective stop rates of 11.50 per cent, 13.00 per cent, and 14.50 per cent.

Proceedings in the NTB market were bearish, following the liquidity mop-up, as average yield widened by 15 bps to 13.30 per cent. There were selloffs across the short (+36 bps) and mid (+1 bp) segments, with respective yields on the 16DTM (+198bps), and 114DTM (+23 bps) bills expanding. Conversely, demand for the 268DTM (-43 bps) bill led to yield contraction at the long (-4 bps) end of the curve.

In the bond market, bearish sentiments persisted, as average yield climbed 5 bps to 15.34 per cent. Sell pressure was concentrated at the short (+13 bps) and long (+3 bps) ends of the curve, with respective yields on the FEB-2020 (+20 bps) and JUL-2034 (+9 bps) bonds recording expansions. Yield at the mid segment was flat.