Nigerian bourse records first up 1.00% Wednesday

The Nigerian equities market recorded its first gain of the week, as the benchmark index widened by 1.00 per cent to 27,681.61 points, following investors’ interest in GUARANTY and ZENITHBANK.

As a result, the month-to-date return was up +0.57 per cent while the year-to-date losses moderated to 11.93 per cent.

The total volume of trades increased by 91.64 per cent to 379.51 million units, valued at NGN5.25 billion and exchanged in 3,923 deals. GUARANTY was the most traded stock by volume and value at 98.42 million units and NGN2.83 billion.

All sector indices gained except for the Oil & Gas (-0.19%) index,  the Banking (+2.99%), Industrial Goods (+0.94%), Insurance (+0.45%) and Consumer Goods (+0.27%)  indices closing positive.

Market sentiment, as measured by market breadth, was positive (1.85x) as 24 tickers recorded gains relative to 13 losers. On the gainers’ list, CUTIX (+10.00%) and ETI (+10.00%) recorded the largest gains, while CHAMPION (-8.80%) and RTBRISCOE (-6.90%) recorded the largest declines.

In the currency market, the naira traded flat against the US dollar at NGN360.00/USD in the parallel market, while it appreciated by 0.05% to NGN363.46/USD at the I&E FX window.

In the Money market & fixed income market, the overnight lending rate declined by 271 bps to 18.29%, as amidst buoyant system liquidity.

Activities in the Treasury bills market were bearish, as the average yield widened by 20bps to 13.58%. Sell-offs of the 57DTM (+31bps), 106DTM (+49bps) and 225DTM (+21bps) bills, led to yield expansions at the short (+5bps), mid (+7bps) and long (+17bps) segments, respectively.

At today’s primary market auction, the CBN fully allotted NGN179.75 billion worth of instruments – NGN3.00 billion of the 91DTM bill, NGN8.39 billion of the 182DTM bill, and NGN168.36 billion of the 364DTM bill – at respective stop rates of 11.10% (previously 11.10%), 11.75% (previously 11.80%) and 13.30% (previously 13.29%).

Trading in the Treasury bonds market was mixed, albeit with a bearish tilt, as average yield expanded marginally by 1bp to 14.23%. Sell-offs of the APR-2027 (+7bps) and FEB-2028 (+5bps) bonds led to yield expansions at the short (+1bp) and mid (+1bps) segments, respectively. Conversely, demand for the MAR-2036 (-8bps) bond led to a marginal yield contraction at the long (-4bps) segment.