WED, MAY 2 2018-theG&BJournal-The Nigeria equities market began the month on a positive note and, the currency, the Naira paid attention, appreciating marginally by 0.04% to NGN360.51, while it closed flat at NGN362 in the parallel market.
The All Share Index (ASI) inched higher for the third consecutive session by 0.09% to 41,306.02 points, following interest in value stocks, as well as positive reaction to corporate earnings while the total turnover in the I&E FX window improved significantly by 112.49% to USD362.52 million, traded within the NGN357-363.50/USD band.
The Year-to-Date gain improved slightly, to 8.1% — hitting the 8% mark for the first time since March 26th.
The Oil & Gas (+1.22%) index recorded the highest gain, driven by demand for the shares of MOBIL (+9.55%) — which showed significant improvement in top (+79.1% y/y to NGN45.08 billion) and bottom (+21,005.6% to NGN2.76 billion) line performance in its recently released Q1-18 results. The Banking (+0.63%) and Industrial Goods (+0.31%) indices followed suit as UBA (+1.30%) and DANGCEM (+0.77%) recorded gains. On the flip side, the Consumer Goods (-1.09%) and Insurance (-0.59%) indices declined, owing to profit-taking in DANGFLOUR (-9.40%), and WAPIC (-3.64%) stocks, respectively.
Market breadth remained positive, with 23 gainers and 15 losers, led by MOBIL (+9.55%) and DANGFLOUR (-9.40%), respectively. Total volume of trade decreased by 38.68% to 276 million units, while value of trades was 38.95% higher, at NGN6.89 billion, and exchanged in 5,327 deals.
The overnight lending rate fell by 21 bps to 2.21%, amidst still buoyant liquidity and the absence of OMO auction. OMO and treasury bills worth NGN186.68 billion and NGN190.84 billion will mature into the system tomorrow.
Proceedings in the NTB market were bullish, as average yield decreased by 9 bps to 11.15%. The short (-23 bps) and mid (-15 bps) ends of the curve recorded yield contractions, while yield expanded at the long (+11 bps) segment. Notable bills include the 36DTM (-120 bps), 183DTM (-146 bps), and 218DTM (+126 bps) respectively. At today’s NTB auction, NGN9.54 billion, NGN47.71 billion, and NGN38.17 billion of the 91-day, 182-day, and 364-day bills were allotted.
The bills were 4.22x oversubscribed, with yields closing lower across the 91-day (10.00%; previously 10.90%), 182-day (10.95%; previously 12.00%), and 364-day (11.15%; previously 12.08%) bills.
Sentiments were mixed in the bond market, with average yield closing flat at 12.67%. Yield expanded at the short (+20 bps) end of the curve, following selloff of the JUN-2019 (+125 bps) bond. Conversely, the mid (-18 bps) and long (-8 bps) segments recorded yield contractions, driven by demands for the JAN-2026 (-26 bps) and JUL-2030 (-19 bps) bonds, respectively.
