Nigerian bourse begins the week positive as Index up 0.51%

The Nigerian equities market started the week positive, as the ASI rose 0.51 per cent to 32,222.24 points, owing to interest in Consumer Goods stocks.

Accordingly, the Month-to-Date and Year-to-Date losses moderated to 0.75 per cent and 15.74 per cent, respectively.

The Consumer Goods (-1.37%) index was the top gainer, following price appreciations in index heavyweights NB (+2.66%) and NESTLE (+1.35%).

The Insurance (+0.80%) and Banking (+0.38%) indices followed suit, driven by interest in CONTINSURE (+6.38%) and FBNH (+2.01%).

Conversely, a decline in FO (-7.77%) led to a loss in the Oil & Gas (-0.14%) index. The Industrial Goods index closed flat.

Market breadth was positive with 26 gainers and 5 losers, led by GLAXOSMITH (+9.96%) and MBENEFIT (-8.00%) stocks respectively.

Total volume and value of trades dropped by 9.8 per cent and 35.6 per cent to 148.10 million units and NGN1.80 billion, respectively, exchanged in 2,853 deals.

“ 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”, analysts at Cordros Capital said.

The naira weakened against the dollar by 0.27 per cent to NGN364 in the parallel market (highest since 28th May 2018), while it strengthened by +0.09% to NGN363.69 in the I&E FX window.

Total turnover in the IEW fell by 39.6% to USD108.17 million in Friday’s session, vs. the previous session, with trades consummated within the range of NGN357.00-NGN365.00/USD.

Meanwhile, the apex bank, on Friday, intervened in the FX market, injecting USD310.03 million into the interbank retail Secondary Market Intervention Sales (SMIS), and selling CNY62.18 million in spot and short-tenured forwards.

The overnight lending rate rose 366 bps to 10.83 per cent, from 7.17 per cent in the previous session, as banks provisioned for the CBN’s wholesale FX intervention.

Trading in the treasury bills market was mixed, as average yield closed flat at 14.00 per cent. Yield expanded at the long (+3 bp) end of the curve, owing to a selloff of the 311DTM (+30 bps) bill. Conversely, yield contracted at the short (-2 bps) segment, following interest in the 10DTM (-42 bps) bill. Yield at the mid segment was flat.

Activities in the bond market were also mixed, albeit with a bullish bias, as average yield moderated by 2 bps to 15.40 per cent. Demand was concentrated at the short (-5 bps) and long (-2 bps) ends of the curve, with respective yields on the FEB-2020 (-33 bps) and JUL-2034 (-5 bps) bonds contracting. Conversely, a selloff of the JAN-2026 (+2 bps) bond led to yield expansion at the mid (+1 bp) segment.

At the FGN bond auction scheduled for Wednesday, the DMO will offer NGN115 billion – NGN35 billion of the APR-2023 (re-opening), NGN35 billion of the MAR-2025 (re-opening), and NGN45 billion of the FEB 2028 (re-opening) – in bonds to investors.