MON, FEBRUARY 5 2018-theG&BJournal-The bears resurfaced in the domestic bourse, with investors taking profit on previous gains, causing the All Share Index (ASI) to depreciate by 0.85% to 44,261.72 points.
The NGN/USD was on the other hand flat at NGN363 in the parallel market, while it strengthened by 0.12% to NGN360.25 in the I&E FX window. Total volume traded in the I&E FX window decreased by 9.78% to USD251.77 million, against USD279.07 million in the previous day.
Consequently, the Month-to-Date and Year-to-Date returns moderated to -0.18% and 15.74% respectively.
The Industrial Goods (-1.93%) and Oil & Gas (-0.64%) indices closed negative, following profit taking in the shares of DANGCEM (-2.88%) and FO (-4.95%) respectively, while the Insurance (+0.47%), Banking (+0.27%), and Consumer Goods (+0.19%) indices closed positive, owing to demands for AIICO (+10.00%), ZENITHBANK (+2.19%), and DANGSUGAR (+1.69%) shares respectively.
Market breadth turned negative, with 34 losers and 22 gainers, led by UNIC (-8.70%) and AIICO (+10.00%). Also, total volume of trades dropped 20.25% to 426.87 million units, valued at NGN2.77 billion, and exchanged in 5,741 deals.
Analysts at Cordros Capital say their theme for equities remains positive, amidst strengthening macroeconomic fundamentals; more so, as investors take position ahead of Q4-17 corporate releases.
The overnight lending rate rose by 716 bps to 19.33%, against last week’s close of 12.17%, following outflow of NGN115.75 billion via OMO sales.
Proceedings in the NTB market were bullish, with average yield inching lower by 3 bps to 13.78%. Yields fell at the short (-9 bps) and mid (-1 bp) ends of the curve, while it rose at the long (+1 bp) segment, following demands for the 94DTM (-50 bps) and 101DTM (-26 bps) bills, and selloff of the 269DTM (+22 bps) bill respectively.
Conversely, activities were bearish in the bond market, as average yield expanded by 2 bps to 13.44%. Yield expansion at the long (+3 bps) end of the curve outweighed contraction at the short (-2 bps) and mid (-1 bp) segments. Notable bonds include the JUN-2019 (-2 bps), FEB-2020 (-1 bp), and APR-2037 (+10 bps) respectively.
