WED, MAY 24 2023-theGBJournal | Nigerian stocks extended thier bullish run Wednesday with investors’s interest in Nestle, Geregu and Seplat propelling the performance. The Treasury bills market traded tamely while the FGN Bonds secondary market were mixed.
The NGX benchmark index gained 0.58% to close at 52,927.60 points.
Investors interests in NESTLE (+9.98%), GEREGU (+2.95%) and SEPLAT (+2.13%) offset losses in ZENITHBANK (-0.93%), GTCO (-1.44%) and PZ (-2.70%).
Consequently, the year-to-date (YTD) return rose to 3.27%, while market capitalization gained N166.84bn to close at N28.82trn.
Analysis of today’s market activities showed trade turnover settled higher relative to the previous session, with the value of transactions up by 51.55%.
A total of 455.18m shares valued at N7.83bn were exchanged in 6,635 deals.
ACCESSCORP (+6.19%) led the volume chart with 69.19m units traded while SEPLAT (+2.13%) led the value chart in deals worth N1.84bn.
Market breadth closed positive at a 1.87-to-1 ratio with advancing issues outnumbering declining ones. NESTLE (+9.98%) led twenty-seven others on the leader’s log while WAPIC (-8.70%) topped fourteen others on the laggard’s table.
Meanwhile, the local currency, the naira, appreciated by 0.2% to NGN463.33/USD at the I&E window.
At the money market, the overnight lending rate contracted by 38bps to 11.1%, in the absence of any significant funding pressure on the system.
Trading in the Nigerian Treasury bills secondary market was quiet, as market participants anticipated the result of today’s PMA. Thus, the average yield was flat at 6.8%.
Activities in the FGN bonds secondary market were mixed, although with a bearish tilt, as the average yield inched higher by 1bp to 14.0%. Across the benchmark curve, the average yield contracted at the short (-2bps) end due to buying interest on the JAN-2026 (-7bps) bond but expanded at the long (+3bps) end as investors sold off the JAN-2042 (+12bps) bond. Elsewhere, the average yield closed flat at the mid segment.
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