MON 07 FEB, 2022-theGBJournal- The Nigerian equities market started the week’s trading on a negative note as profit-taking witnessed in MTN (-0.7%) caused a 0.2% decline in the benchmark index. Thus, the NGX ASI settled at 47,203.39 points. Consequently, the Month-to-Date and Year-to-Date return moderated to +1.2% and +10.5%, respectively.
The total volume traded increased by 26.5% to 285.48 million units, valued at NGN5.13 billion, and exchanged in 5,342 deals. GTCO was the most traded stock by volume and value at 44.93 million units and NGN1.23 billion, respectively.
Sectoral performance was broadly negative, as the Oil & Gas (-1.5%), Insurance (-0.8%) and Consumer Goods (-0.4%) indices declined while the Banking (+1.1%) index recorded the sole gain. The Industrial Goods index closed flat.
As measured by market breadth, market sentiment was mixed (1.0x) as 21 tickers gained relative to 22 losers. SCOA (+9.6%) and PRESTIGE (+7.1%) recorded the most significant gains of the day, while OKOMUOIL (-10.0%) and NEM (-9.6%) topped the losers’ list.
At currency market, the naira was flat at NGN416.50/USD at the I&E window.
The overnight lending rate contracted by 100bps to 12.3% in the absence of any significant funding pressures on the system.
The NTB secondary market traded quietly as the average yield was flat at 4.5%. Similarly, the average yield was unchanged at 5.5% in the OMO segment.
Trading in the Treasury bond secondary market was bullish, as the average yield contracted by 2bps to 11.5%. Across the benchmark curve, the average yield contracted at the short (-10bps) end following demand for the MAR-2024 (-35bps) bond but expanded at the mid (+2bps) segment due to the sell-off of the FEB-2028 (+22bps) bond. Conversely, the average yield was flat at the long end.-With Cordros Research
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