…MTNN and FBNH down -1.7% and -3.4% respectively
…the NTB secondary market was bullish, as the average yield pared by 1bp to 17.7%.
TUE, MAR 26 2024-theGBJournal| The Nigerian equities market extended Monday’s losses as investors ponders today’s central bank policy decision.
The Central Bank of Nigeria (CBN) hiked its key interest rate by 200 basis points, as it looks to arrest the country’s currency crisis and runaway inflation.
The All-Share Index fell by 0.2% to 103,952.47 points, following sell pressures on MTNN (-1.7%) and FBNH (-3.4%). The Month-to-Date and Year-to-Date returns moderated to +4.0% and +39.0%, respectively.
The total volume of trades advanced by 22.0% to 374.41 million units, valued at N11.29 billion, and exchanged in 8,689 deals.
GTCO was the most traded stock by volume and value at 67.15 million units and N3.27 billion, respectively.
Analysing by sectors, the Insurance (+0.2%) and Banking (+0.1%) indices posted gains, while the Consumer Goods (-0.1%) index declined. The Industrial Goods and Oil & Gas indices stayed flat.
As measured by market breadth, market sentiment was mixed (1.0x), as an equal number of tickers (24) gained and lost. ABBEYBDS (+10.0%) and MAYBAKER (+9.7%) topped the gainers’ list, while UPDC (-9.9%) and UCAP (-8.8%) recorded the highest losses of the day.
Meanwhile, the naira appreciated by 1.8% to N1,382.95/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM), putting it course for another weekly gain, and reflecting moderate inflows of FX from foreign portfolio investors.
Last week, the currency gain 11.96% to close at N1,431.49/US$1, reducing the year-to-date decline of the Naira to US dollar to 36.63%.
In the parallel market, the Naira gained 8.45% ending the week at N1,480.00/US$1.
The improvement in the official window created a 3.39% gap between the official and street markets.
At the fixed income market, proceedings in the NTB secondary market was bullish, as the average yield pared by 1bp to 17.7%.
Across the curve, the average yield declined at the short (-1bp), mid (-1bp) and long (-1bp) segments due to interest in the 72DTM (-1bp), 170DTM (-1bp) and 331DTM (-1bp) bills, respectively. Likewise, the average yield contracted marginally by 1bp to 18.5% in the OMO segment.
Sentiments in the FGN bond secondary market was bearish, as the average yield advanced by 3bps to 19.1%.
Across the benchmark curve, the average yield expanded at the short (+10bps) end following profit-taking activities on the JAN-2026 (+50bps) bond but was flat at the mid and long segments.
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