WED, SEPT 20 2023-theGBJournal |Sentiments in the domestic bourse turned negative, as profit-taking activities witnessed in TRANSCOHOT (-10.0%) caused a 3bps decline in the benchmark index.
Thus, the All-Share Index closed at 68,335.34 points. Accordingly, the Month-to-Date and Year-to-Date returns moderated to +2.7% and +33.3%, respectively.
The total volume traded declined by 17.4% to 559.06 million units, valued at NGN5.25 billion, and exchanged in 8,068 deals.
OANDO was the most traded stock by volume and value at 110.00 million units and NGN1.60 billion, respectively.
Across the sectors, the Banking (-1.0%) and Consumer Goods (-0.4%) indices declined, while the Oil & Gas (+0.6%) index gained. Meanwhile, the Insurance and Industrial Goods indices closed flat.
As measured by market breadth, market sentiment was negative (0.9x), as 29 tickers lost relative to 27 gainers.
TRANSCOHOT (-10.0%) and IKEJAHOTEL (-9.9%) recorded the most significant losses of the day, while SUNUASSUR (+10.0%) and BERGER (+9.9%) topped the gainers’ list.
Meanwhile, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) is expected to hold its penultimate meeting of the year on the 25th and 26th of September
Analysts at Cordros Research believes the MPC will raise the MPR further by 25bps, remove the N2 billion limit on the Standing Deposit Facility (SDF), and retain other policy parameters.
That potentially will have the market focused on the rate direction before enthusiasm returns.
At the FX market, the naira appreciated by 0.8% to N770.71/USD at the I&E window.
The overnight lending rate contracted by 11.50ppts to 3.9%, in the absence of any significant inflows into the system.
Also, the Treasury bills secondary market traded quietly as the average yield remained at 7.9%. Similarly, the average yield closed flat at 13.4% in the OMO segment.
Proceedings in the FGN bond secondary market were mixed, albeit with a bullish tilt, as the average yield inched higher by 1bp to 14.4%.
Across the benchmark curve, the average yield declined at the short (-4bps) end following demand for the JAN-2026 (+22bps) bond but was unchanged at the mid and long segments.
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