Daily Market Wrap

Wednesday, August 27, 2020

Market Insights- The Nigerian equities market maintained its uptrend with both the All-Share Index and the NSE-30 Index closing in the green. On the sectoral front, key sector indices showed a mixed performance. The Consumer Goods (+0.16 percent) and Industrial (+0.02 percent) sectors recorded gains, while the Insurance (-0.92 percent) and Banking (-0.03 percent) sectors ended lower. The Oil and Gas sector remained unchanged. The markets may remain volatile in the near term. We advise investors to accumulate quality stocks with a long term investment 

Market Brief

  • The Nigerian equity market closed on a positive note today as All Share Index increased by 0.15 percent to close at 25,330.10 points.
  • The market cap of equities listed on the NSE increased to ₦13.214 trillion from ₦13.194 trillion
  • The market breadth was positive with 24 gainers as against 8 losers.

NSE 30

  • The NSE 30 Index increased by 0.16 percent
  • STANBIC IBTC Bank and Sterling Bank were the key gainers, while Custodian Investment Plc and UBA were the only losers.

Money Markets

  • The Overnight (O/N) rate declined by 0.13 percent to close at 2.38 percent
  • The Open Buy Back (OBB) rate also declined by 0.25 percent to close at 1.75 percent

FX

As part of CBN’s effort to increase FX liquidity in the country, CBN has directed all banks in the country to submit details of exporters that have defaulted in repatriating their export proceeds. The CBN stressed that all exporters should repatriate export proceeds back to the country to support the local currency and boost the economy. At the I&E FX window, relatively lower volumes passed through the market, as it remains affected by tightened system liquidity. Naira remained stable at ₦386.00 per dollar. Most participants maintained bids between ₦380.00 and ₦386.00 per dollar.

Treasury Bills

  • NT-Bills market closed on a flat note with average yield across the curve remaining unchanged at 1.50 percent.

At the Primary Market Auction held today, the CBN offered NT-Bills maturities worth ₦197.60 billion across the 91-day (₦20.37 billion), 182-day (₦31.75 billion), and 364-day (₦145.48 billion) tenors.

  • In the OMO bills market, the average yield across the curve declined by 18 bps to close at 3.19 percent as against the last close of 3.37 percent.

Bond Markets

  • The FGN bond market closed on a negative note today, as the average bond yield across the curve cleared higher by 3 bps to close at 4.82 percent

Though trading volumes remain relatively subdued in the secondary bond market, we expect improved demand from local investors as the system liquidity is likely to benefit from OMO maturities and FGN Bond coupon payment later in the week.

By FSDH Research

For the full report click on the link below:

https://tinyurl.com/MarketWrapAug26