Daily Market Wrap

Thursday, August 13, 2020

Market Insight– The Nigerian equities market continued to trade higher as both the All-Share Index and the NSE-30 Index closed in the green. Performance across the sectors was broadly positive except for the Industrial sector, which recorded a loss of 0.12 percent. The Insurance (+2.61 percent), Consumer Goods (+1.46 percent), Oil & Gas (+0.31 percent), and Banking (+0.03 percent) sectors recorded gains. The markets may remain volatile in the near term. We advise investors to accumulate quality stocks with a long term view.

Market Brief

  • The Nigerian equity market closed on a positive note today as All Share Index increased by 0.38 percent to close at 25,236.97 points.
  • The market cap of equities listed on the NSE increased to ₦13.165 trillion from ₦13.115 trillion
  • Market breadth was negative with 15 gainers and 18 losers

NSE 30

  • The NSE 30 Index increased by 0.44 percent
  • Unilever Nigeria and Nigerian Breweries were the key gainers, while Sterling Bank and Eco Bank Transnational Inc (ETI) were the key losers today.

Money Markets

  • The Overnight (O/N) rate declined by 1.46 percent to close at 3.79 percent
  • The Open Buy Back (OBB) rate also declined by 1.33 percent to close at 3.00 percent

The money market rates dropped by an average of 140 bps as the system liquidity improved following maturities of NT-bills worth ₦56.78 billion and OMO bills worth ₦29.78 billion. The money market rates could witness upward pressure tomorrow due to the anticipated OMO bills auction and bi-weekly FX retail auction.


The volume at the I&E FX window improved as against the record low volume of $3.97 million on August 10. However, the market is still experiencing low volumes due to the weak dollar supply. Naira appreciated marginally by 0.04 percent as the dollar was quoted at ₦385.83 as compared to ₦386.00 as on the previous day. Most participants maintained bids between ₦380.00 and ₦386.00 per dollar.

Treasury Bills

  • NT-Bills market closed on a positive note with average yield across the curve declining by 12 bps to close at 1.59 percent

At Primary Market Auction held on August 12, the CBN sold NT-Bills worth ₦56.78 billion across the 91-day (₦19.78 billion), 182-day (₦10.00 billion), and 364-day (₦27.00 billion) tenors. The stop rates for the 182-day and 364-day tenors cleared lower at 1.3890 percent (-11 bps) and 3.1999 percent (-20 bps), while the stop rate for 92-day remained unchanged at 1.2000 percent. The auction was oversubscribed by 108 percent with bid-to-cover ratios settling at 1.55x (91-day), 3.11x (182-day), and 2.09x (364-day). The auction witnessed an oversubscription, especially in 182-day bills, as the market participants held themselves back in the secondary market from the last few days.

  • The OMO bills market closed on a positive note with average yield across the curve declining by 11 bps to close at 4.07 percent

Bond Markets

The FGN bond market closed on a positive note today, as the average bond yield across the curve cleared lower by 12 bps to close at 4.67 percent from 4.79 percent on the previous day. Average yields across short, medium, and long tenor of the curve declined by 15 bps, 5 bps, and 4 bps, respectively.

Culled from FSDH Research

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