Daily Market Wrap

nairawebng

July 22, 2020

By FSDH Research

Market Insight: The Nigerian equity market continued to trade lower, as both the All-Share Index and the NSE-30 Index recorded minor losses. Major sector indices showed a divergence. The Insurance (-0.64 percent) sector closed in the negative territory, while the Banking sector recorded marginal losses of 0.03 percent. On the other hand, the Oil & Gas sector (+0.04 percent) was a marginal gainer and Consumer goods & Industrial sectors remained unchanged. We advise investors to buy quality stocks with a long term investment horizon.

Market Brief

  • The Nigerian equity market closed on a flat note today, as All Share Index decreased marginally by 0.004 percent to close at 24,173.53 points.
  • The market cap of equities listed on the NSE declined to ₦12.610 trillion from ₦12.611 trillion
  • Market breadth was neutral with 9 gainers as against 9 losers

NSE 30

  • The NSE 30 Index decreased marginally by 0.003 percent
  • Guaranty Trust Bank was the only gainer, while Sterling Bank and Fidelity Bank Plc were the only losers.

Money Markets

  • The Overnight (O/N) rate declined by 0.30 percent to close at 2.50 percent
  • The Open Buy Back (OBB) rate also declined by 0.20 percent to close at 1.90 percent

Money market rates are likely to remain at a subdued level; however, FX intervention by CBN could exert upward pressure on the money market rates by the end of the week.

The I&E FX market remained subdued due to tight liquidity conditions. Naira remained stable at ₦388.17 per dollar. Most participants maintained bids between ₦380.00 and ₦390.00 per dollar.

Treasury Bills

  • NT-bills market closed on a flat note today, with average yield across the curve remaining unchanged at 1.75 percent.
  • In the OMO bills market, average yield across the curve declined by 26 bps to close at 4.85 percent

Bond Markets

  • The FGN bond market closed on a positive note today, as the average bond yield across the curve cleared lower by 2 bps to close at 4.29 percent

Today, the DMO conducted its scheduled FGN bond auction for the reopening of the 10-year, 15-year, 30-year instruments and a new issue of a 25-year tenor bond. A total of ₦130 billion was offered across 10-year (₦25 billion), 15-year (₦35 billion), 25-year (₦35 billion) and 30-year (₦35 billion) tenors. The bond settlement will take place on July 24, 2020.