TUE, MAY 30 2023-theGBJournal | Following the inauguration of the President-elect, Nigerian markets traded positively Tuesday as the NGX Exchange, Treasury Bills and FGN Bonds secondary markets ended the day on positive note.
The NGX exchange reacted positively as the benchmark closed 5.23% stronger, the biggest single-day gain since 12 November 2020, to settle at 55,745.74 points.
Index heavyweights, MTNN (+7.53%), DANGCEM (+7.41%) and BUACEMENT (+4.55%) drove the market’s strong performance, alongside gains in Tier-1 banking names.
As a result, the year-to-date (YTD) return rose to 8.77%, with the market capitalization up by N1.51trn to close at N30.35trn.
Analysis of today’s market activities showed trade turnover settled higher relative to the previous session, with the value of transactions up by 106.07%. A total of 1.08bn shares valued at N15.80bn were exchanged in 9,916 deals.
ACCESSCORP (+8.33%) led the volume and value charts with 199.62m units traded in deals worth N2.45bn.
Market breadth closed positive at a 14.50-to-1 ratio with advancing issues outnumbering declining ones. ZENITHBANK (+10.00%) led fifty-seven (57) others on the leader’s log while AIICO (-1.61%) topped three (3) others on the laggard’s table.
Activities in the Treasury bills secondary market were bullish, as the average yield contracted by 20bps to 6.6%. Across the curve, the average yield closed flat at the short and mid segments but declined at the long (-33bps) end, following demand for the 303DTM (-100bps) bill.
Similarly, the Nigerian bonds secondary market traded with bullish sentiments, as the average yield contracted by 5bps to 13.9%. Across the benchmark curve, the average yield contracted at the short (-12bps) and long (-5bps) ends as investors demanded the MAR-2024 (-40bps) and APR-2037 (-18bps) bonds, respectively.
Meanwhile, the average yield expanded at the mid (+6bps) segment following the sell-off of the APR-2029 (+11bps) bond.
The overnight lending rate was flat at 13.3%, as the system liquidity closed in a net long position (NGN229.11 billion).
The naira was flat at N464.50/USD at the I&E window.
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