Wednesday, August 12, 2020
Market Insight. The Nigerian equities market reversed its direction and closed in the green today after recording losses for two consecutive trading sessions. Both the All-Share Index and the NSE-30 Index traded higher with the All-Share Index (ASI) YTD return settling at -6.34 percent. On the sectoral front, key sector indices showed a mixed performance. The Oil & Gas (+5.24 percent), Insurance (+0.64 percent), and Consumer Goods (+0.19 percent) sectors recorded gains, while the Banking (-0.36 percent) and Industrial (-0.26 percent) sectors ended lower. The markets may remain volatile in the near term. We advise investors to accumulate quality stocks with a medium to long term investment .
Market Brief
- The Nigerian equity market closed on a positive note today as All Share Index increased by 1.04 percent to close at 25,141.48 points.
- The market cap of equities listed on the NSE increased to ₦13.115 trillion from ₦12.981 trillion
- The market breadth was positive with 18 gainers as against 11 losers.
NSE 30
- The NSE 30 Index increased by 0.15 percent
- Seplat Petroleum and Presco were the key gainers, while Access Bank and Eco Bank Transnational Inc (ETI) were the key losers.
Money Markets
- The Overnight (O/N) rate declined by 0.92 percent to close at 5.25 percent
- The Open Buy Back (OBB) rate declined by 0.83 percent to close at 4.33 percent
Cardinal Stone Partners Limited is planning to raise up to ₦5.0 billion by offering Series 1 (270-day tenor) Commercial Paper under its ₦10.0 billion Commercial Paper Programme to support its short term financing requirements. The offer has commenced on August 11 and would close on August 19, with the settlement on August 24. The Commercial Paper will have an effective yield of 7.00 percent and a discount rate of 6.66 percent. The Company has received an issuer rating of Bbb by Agusto & Co., A3 (Short term) & BBB (Long term) by GCR, and A2 (Short term) & A- (Long term) by DataPro.
FX
The I&E FX window has been witnessing a shortage in the dollar supply since March 2020, reflecting the pressure on foreign reserves. Naira weakened by 0.13 percent as the dollar was quoted at ₦386.00 as compared to ₦385.50 as on the previous day. Most participants maintained bids between ₦380.00 and ₦387.00 per dollar.
Treasury Bills
- NT-Bills market closed on a flat note with average yield across the curve remaining unchanged at 1.71 percent.
Today, the CBN conducted its scheduled Primary Market Auction offering NT-bills worth ₦56.78 billion across 91-day (₦19.78 billion), 182-day (₦10.00 billion), and 364-day (₦27.00 billion) tenors.
- The OMO bills market closed on a positive note with average yield across the curve declining by 5 bps to close at 4.18 percent
Bond Markets
- The FGN bond market closed on a negative note today, as the average bond yield across the curve cleared higher by 44 bps to close at 4.79 percent
Yesterday, the DMO released FGN bond offer circular for August 2020, indicating plans to offer FGN bond worth ₦150 billion through re-opening of 10-year (₦25 billion), 15-year (₦40 billion), 25-year (₦45 billion), and 30-year (₦40 billion) tenors. The DMO has increased supply by ₦20 billion as compared to the last FGN bond auction for July 2020.The bond auction is scheduled on August 19 with the settlement on August 21.
Culled from FSDH Research
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