Daily Market Wrap

Friday, August 7, 2020

Market Insights– Positive sentiment continued to pervade the Nigerian equities market as both the All-Share Index and the NSE-30 Index closed in the green with All-Share Index (ASI) YTD return settling at -6.71 percent. Performance across the sectors was broadly positive except for the Insurance sector, which recorded a loss of 0.53 percent. The Banking (+2.38 percent), Consumer Goods (+0.42 percent), Oil & Gas (+0.08 percent), and Industrial (+0.02 percent) sectors recorded gains. The markets may remain volatile in the near term. We advise investors to accumulate quality stocks with a long term investment horizon.

Market Brief

  • The Nigerian equity market closed on a positive note today as All Share Index increased by 0.45 percent to close at 25,041.89 points.
  • The market cap of equities listed on the NSE increased to ₦13.063 trillion from ₦13.005 trillion
  • Market breadth was positive with 23 gainers as against 5 losers.

NSE 30

  • The NSE 30 Index increased by 0.56 percent
  • UBN and FCMB Group Plc were the key gainers, while there were no losers today.

Money Markets

  • The Overnight (O/N) rate declined by 1.48 percent to close at 7.17 percent
  • The Open Buy Back (OBB) rate also declined by 1.67 percent to close at 6.33 percent

We expect money market rates to remain at the single-digit level, barring any significant funding pressure from the market participants.


Yesterday, the I&E FX window turnover recorded a substantial increase of 916.77 percent to $106.66 million due to the significant improvement in the dollar supply. This was the highest increase recorded so far in the last three weeks. Today, Naira weakened by 0.13 percent as the dollar was quoted at ₦386.00 as compared to ₦385.50 on the previous day. Most participants maintained bids between ₦383.75 and ₦393.05 per dollar.

As at Friday , August 7, the official exchange rate indicated on the CBN website is N379 to the USD dollar.

Treasury Bills

  • NT-bills market closed on a negative note with average yield across the curve increasing by 1 basis point to close at 1.71 percent
  • The OMO bills market closed on a negative note with average yield across the curve increasing by 5 bps to close at 4.06 percent

Bond Markets

  • The FGN bond market closed on a negative note today, as the average bond yield across the curve cleared higher by 1 bps to close at 4.07 percent

Yesterday, the DMO announced the resumption of its offer for the FGN Savings Bond effective from August 2020. The offer for subscriptions will open on August 10 and will close on August 14. Earlier in April 2020, the DMO had suspended the monthly offers of the FGN Savings Bond due to the restrictions on activities and movement as part of measures adopted by the Government to curtail the spread of COVID-19 pandemic.

Culled from FSDH Research

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