WED 12 JAN, 2022-theGBJournal- Bullish sentiments returned to the Nigerian equities market, as investors’ interest in DANGCEM (+6.2%) drove the benchmark index higher.
The All-Share Index advanced by 1.7% to 44,608.82 points. Accordingly, the Year-to-Date gain increased to +4.4%.
The total volume traded decreased by 9.6% to 266.33 million units, valued at NGN3.82 billion, and exchanged in 4,502 deals. TRANSCORP was the most traded stock by volume at 89.02 million units, while SEPLAT was the most traded stock by value at NGN930.23 million.
Sectoral performance was broadly positive as the Industrial Goods (+3.1%), Oil & Gas (+1.4%), Banking (+0.4%), and Consumer Goods (+0.1%) indices gained, while the Insurance (-0.5%) index declined.
As measured by market breadth, market sentiment was positive (1.8x) as 24 tickers gained relative to 13 losers. ACADEMY (+10.0%) and JAIZBANK (+10.0%) recorded the most significant gains of the day, while REGALINS (-8.7%) and CHIPLC (-8.7%) topped the losers’ list.
Currency
The naira appreciated by 0.1% to NGN416.50/USD at the I&E window.
Money & Fixed Income
The overnight lending rate declined by 50bps to 15.8% in the absence of any significant funding pressure on the system.
Trading in the NTB secondary market closed mixed, albeit with a bullish tilt, as the average yield pared by 2bps to 4.4%. Across the NTB curve, the average yield was flat at the short and long ends but contracted at the mid (-6bps) segment as investors demanded the 183DTM (-37bps) bill. At the NTB PMA, the CBN offered NGN77.61 billion for sale with a total subscription of NGN113.06 billion.
Accordingly, the CBN allotted NGN2.19 billion for the 91-day, NGN1.46 billion for the 182-day, and NGN53.90 billion for the 364-day bills – at respective stop rates of 2.50% (previously 2.49%), 3.44% (previously 3.49%), and 5.50% (previously 4.90 %). Elsewhere, the average yield expanded by 3bps to 5.6% in the OMO segment.
The Treasury bond secondary market traded quietly, as the average yield was unchanged at 11.4%.-With Cordros Research
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