Markets Wrap| NGX All-Share Index slips, down 0.12%, Naira drops 0.3%/$, T-Bills yield unchanged at 7.8%, Bonds yield expands by 6bps to 12.6%

THUR, 11 AUG, 2022-theGBJournal| The bears returned to the Nigerian equities market as profit-taking activities witnessed in MTNN (-0.5%), and STANBIC (-5.6%) caused a  0.1% decline in the All-Share Index. Thus the NGX ASI settled at  50,014.60 points. Consequently, the Month-to-Date loss increased to -0.7%, while the Year-to-Date return moderated to +17.1%.

The total volume traded declined by 52.2% to 133.59 million units, valued at NGN2.44 billion, and exchanged in 4,292 deals. UBA was the most traded stock by volume at 20.45 million units, while MTNN was the most traded stock by value at NGN1.22 billion.

Analysing by sectors, the Insurance (+0.6%) and Industrial Goods (+0.1%) indices recorded gains, while the Banking (-0.6%) index declined. The Consumer Goods and Oil & Gas indices closed flat.

As measured by market breadth, market sentiment was positive (1.4x) as 19 tickers gained relative to 14 losers. NAHCO (+10.0%) and FCMB (+9.8%) topped the gainers’ list, while ABCTRANS (-6.7%) and JAIZBANK (-5.6%) recorded the most significant losses of the day.

Currency

The naira depreciated by 0.3% to NGN430.25/USD at the I&E window.

Money & Fixed Income Markets

The overnight lending rate contracted by 333bps to 11.50%, in the absence of any significant inflow into the system.

The NTB secondary market traded quietly, as the average yield was unchanged at 7.8%. Elsewhere, the average yield expanded by 64bps to 11.1% in the OMO segment.

Proceedings in the Treasury bond secondary market were bearish as the average yield expanded by 6bps to 12.6%. Across the benchmark curve, the average yield expanded at the short (+7bps), mid (+3bps), and long (+6bps) segments as investors sold off the MAR-2027 (+37bps), FEB-2028 (+12bps), and MAR-2035(+45bps) bonds, respectively.

Key highlights of market activities.

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