Friday, August 28, 2020
Market Insight– The Nigerian equities market reversed its trend and closed in the green today with both the All-Share Index and the NSE-30 Index trading marginally higher. On the sectoral front, key sector indices showed a mixed performance. The Insurance (+0.62 percent) and Banking (+0.37 percent) sectors ended higher along with a marginal gain of 0.01 percent in the Industrial sector, while the Consumer Goods (-0.20 percent) sector recorded losses. The Oil and Gas sector remained unchanged. The market may remain volatile in the near term and we advise investors to acquire quality stocks with a long term investment
Market Brief
- The Nigerian equity market closed on a positive note today as All Share Index marginally increased by 0.02 percent to close at 25,309.37 points.
- The market cap of equities listed on the NSE increased to ₦13.204 trillion from ₦13.201 trillion
- The market breadth was negative with 12 gainers as against 13 losers.
NSE 30
- The NSE 30 Index marginally increased by 0.03 percent
- Sterling Bank and Access Bank were the key gainers, while Guinness Nigeria and FBN Holdings were the key losers.
Money Markets
- The Overnight (O/N) rate increased by 12.90 percent to close at 14.90 percent
- The Open Buy Back (OBB) rate also increased by 12.40 percent to close at 13.90 percent
FX
CBN has announced that the gradual sales of foreign exchange to licensed BDC operators will commence with effect from August 31, 2020, as part of efforts to enhance accessibility to foreign exchange, particularly to international flight travelers. The CBN also announced the applicable exchange rate for the disbursement of International Monetary Transfer Operators (IMTOs) proceeds as follows: 1) IMTOs to banks at ₦382 per dollar, 2) Banks to CBN at ₦383 per dollar, 3) CBN to BDCs at ₦384 per dollar, and 4) BDCs to end-users at not more than ₦386 per dollar.
In the I&E FX window, relatively lower volume passed through the market, due to tightened system liquidity. Naira appreciated marginally by 0.02 percent as the dollar was quoted at ₦385.67 as against the last close of ₦385.75 per dollar. Most participants maintained bids between ₦380.00 and ₦393.05 per dollar.
Treasury Bills
- NT-Bills market closed on a negative note with average yield across the curve increasing by 8 bps to close at 2.02 percent
- In the OMO bills market, the average yield across the curve declined by 1 basis point to close at 3.12 percent
Bond Markets
- The FGN bond market closed on a positive note today, as the average bond yield across the curve cleared lower by 6 bps to close at 4.74 percent
On August 27, the NSE listed FGN JUL 2045 Bonds (worth ₦75.0 billion), which were issued by the DMO on behalf of the Federal Government in July 2020. The 25 Year FGN Bond has a coupon rate of 9.80 percent, which will be paid on a semi-annual basis (on every January 24 and July 24 of the year) with the maturity date on July 24, 2045.
By FSDH Research
For the full report click on the link below: