…Market capitalization lost N184.73 billion w/w to close at N59.11 trillion.
…the Treasury bills secondary market traded with bearish sentiments this week as market players reacted to the 25bps increase in the monetary policy rate
SAT NOV 30 2024-theGBJournal| The Nigerian equities market closed the week lower as the market reacted negatively to the Central Bank of Nigeria’s Monetary Policy Committee’s interest rate hike earlier in the week.
The All-Share Index (ASI) declined by 0.3% w/w to 97,507.87 points, as sell pressures on SEPLAT (-6.0%), GTCO (-3.0%), and MTNN (-1.2%), outweighed gains in WAPCO (+7.4%), OANDO (+6.7%), and FBNH (+3.5%).
The Month-to-Date and Year-to-Date returns settled at -0.1% and +30.4%, respectively. Meanwhile, market activity was robust, with trading volume and value rising by 63.6% w/w and 52.8% w/w, respectively. Market capitalization lost N184.73 billion w/w to close at N59.11 trillion.
Sectoral performance was mixed, as the Oil & Gas (-1.9%), Consumer Goods (-0.4%) and Banking (-0.3%) indices settled lower, while the Insurance (+1.2%) and Industrial Goods (+0.8%) indices posted gains.
Meanwhile at the fixed income market, the FGN bond secondary market were bearish this week following the outcome of the MPC meeting. Consequently, the average yield increased by 6bps to 19.5%.
Across the benchmark curve, the average yield expanded at the short (+4bps) and mid (+9bps) segments, following selloffs of the JAN-2026 (+13bps) and JUN-2033 (+53bps) bonds, respectively. The average yield closed flat at the long end.
Similarly, the Treasury bills secondary market traded with bearish sentiments this week as market players reacted to the 25bps increase in the monetary policy rate.
Accordingly, the average yield across all instruments expanded by 71bps to 26.0%.
Across the market segments, the average yield declined by 113bps to 25.2% in the NTB segment and pared by 4bps to 27.2% in the OMO segment.
At the money market, the overnight (OVN) rate contracted by 290bps w/w to 29.9% following inflows from FAAC disbursements (N300.00 billion) and FGN bond coupon payments (NGN5.66 billion). However, the preceding was insufficient to support system liquidity.
Thus, the average liquidity closed at a net short position of N325.66 billion (vs net long position of N121.25 billion in the prior week).
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