Monday, August 31st, 2020.
Market Insight– The Nigerian equities market continued to trade higher today as both the All-Share Index (ASI) and the NSE-30 Index closed in the green. Major sector indices showed a mixed performance. The Oil & Gas (+1.99 percent) and Industrial (+0.55 percent) sectors recorded gains. However, the Banking (-0.74 percent) and Insurance (-0.61 percent) sectors settled lower along with the Consumer goods sector which recorded a marginal loss of 0.01 percent. We advise investors to accumulate quality stocks at lower levels with a long term investment horizon.
- The Nigerian equity market closed on a positive note today as All Share Index marginally increased by 0.07 percent to close at 25,327.13 points.
- The market cap of equities listed on the NSE increased to ₦13.213 trillion from ₦13.204 trillion
- The market breadth was negative with 11 gainers as against 17 losers.
- The NSE 30 Index increased by 0.11 percent
- MOBIL (11 PLC) and Lafarge Africa Plc were the key gainers, while Access Bank and Sterling Bank were the key losers.
- The Overnight (O/N) rate declined by 5.30 percent to close at 9.60 percent
- The Open Buy Back (OBB) rate also declined by 4.80 percent to close at 9.10 percent
Dangote Cement Plc has started offering Series 17 (177-days tenor) and 18 (268-days tenor) Commercial Paper issuance with a target size up to ₦50 billion under the ₦150 billion Commercial Paper Issuance Programme. The offer opened today and would close on September 03 with a settlement on September 08, 2020. The 177-day and 268-day tenor Commercial Papers are being issued at discount rates of 3.9240 percent and 4.8231 percent with implied yields of 4.0 percent and 5.0 percent, respectively. The issuer is assigned AA+ long-term rating by GCR and Aa2.ng long-term rating by Moody’s. It is one of the few companies in Nigeria with a top-notch rating of AA+.
In the I&E FX window, trading volume remained low due to tightened system liquidity. The resumption of FX sales to BDCs is expected to inject more liquidity into the retail segment of the FX market. Naira remained stable at ₦385.67 per dollar. Most participants maintained bids between ₦380.00 and ₦386.00 per dollar.
- NT-Bills market closed on a negative note with average yield across the curve increasing by 10 bps to close at 2.12 percent
- In the OMO bills market, the average yield across the curve declined by 2 bps to close at 3.10 percent
- The FGN bond market closed on a negative note today, as the average bond yield across the curve cleared higher by 1 basis point to close at 4.74 percent
At the secondary bond market, we anticipate an uptick in trading activities on the back of the anticipated improvement in the system liquidity and the absence of a Primary Market Auction this week.
By FSDH Research
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