…The total volume of trades declined by 65.3% to 379.13 million units, valued at N8.71 billion, and exchanged in 10,096 deals
…Proceedings in the Treasury bills secondary market was bullish, as the average yield dipped by 3bps to 25.2%
MON JULY 29 2024-theGBJournal| The Nigerian equities market started the week’s trading on a bearish note following sell pressures in ZENITHBANK (-3.6%) and FBNH (-2.6%), and amidst continuing corporate earnings reports.
Consequently, the NGX ASI declined by 0.1% to close at 98,132.15 points. Accordingly, the Month-to-Date and Year-to-Date returns printed -1.9% and +31.2%, respectively.
The total volume of trades declined by 65.3% to 379.13 million units, valued at N8.71 billion, and exchanged in 10,096 deals. UBA was the most traded stock by volume at 69.06 million units, while SEPLAT was the most traded stock by value at NGN2.71 billion, respectively.
On sectors, the Banking (-1.0%) and Consumer Goods (-0.1%) indices posted losses, while the Oil & Gas (+1.3%) and Insurance (+0.2%) indices posted gains. The Industrial Goods index closed flat.
As measured by market breadth, market sentiment was mixed (1.0x), as an equal number of ticker (21) gained and lost. CAVERTON (-10.0%) and WAPIC (-9.3%) recorded the highest losses of the day, while AFRIPRUD (+10.0%) and CUTIX (+9.9%) topped the gainers’ list.
Naira
The naira fell further Monday by 0.1% to N1,611.40/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM), extending its losing streak.
Last week, the exchange rate at the NAFEM window extended its losing streak for the sixth consecutive week, down by 0.77% to N1,609.29/US$1. This brought the year-todate decline of the Naira to 43.63%, 5.49 percentage points shy of its total depreciation in 2023.
Conversely, in the parallel market, the Naira appreciated by 0.63% to close the week at N1,590.00/US$1 after the CBN sold dollars to the market, closing the gap between the official and street markets.
The CBN’s published gross foreign exchange reserve appreciated further by 1.18% (US$424.91m) to close the week at US$36.44bn
Money Market & Fixed Income
The overnight lending rate contracted by 63bps to 26.0% in the absence of any significant inflows into the system.
Proceedings in the Treasury bills secondary market was bullish, as the average yield dipped by 3bps to 25.2%. Across the curve, the average yield declined at the short (-4bps) and long (-5bps) ends due to interests in the 87DTM (-4bps) and 255DTM (-7bps) bill, respectively.
Meanwhile, the average yield expanded at the mid (+3bps) segment, driven by profit-taking activities in the 101DTM (+41bps) bill. Elsewhere, the average yield declined by 4bps to 24.9% in the OMO segment.
The Treasury bond secondary market traded on a bearish note Monday, as the average yield advanced by 16bps at 19.4%.
Across the benchmark curve, the average yield increased at the short (+26bps), mid (+8bps) and long (+14bps) segments, as investors sold off the APR-2029 (+125bps), JUL-2030 (+40bps) and JUL-2038 (+126bps) bonds, respectively.
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