- Index Appreciates by 1.25% as 20 Stocks Gain
The Nigerian equities market closed on a positive note on Monday as 20 stocks gained, boosting the Nigerian Stock Exchange All-Share Index by 1.25 per cent.
The NSE market capitalisation rose to N9.145tn from N9.032tn, as the NSE ASI closed at 26,580.22 basis points from 26,251.39 basis points recorded on Friday.
A total of 219.025 million shares valued at N1.407bn were traded in 3,423 deals.
The NSE ASI halted its losing streak to settle the year-to-date return at -1.10 per cent.
On the other hand, the volume and turnover of transactions pared by 0.56 per cent and 7.41 per cent, respectively, at the close of trading. Twenty stocks appreciated in value while 17 declined at the end of Monday’s trading activities.
On the gainers’ chart for the day were United Capital Plc, FCMB Group Plc, Fidelity Bank Plc, Sterling Bank Plc and African Prudential Registrars, which appreciated by 9.60 per cent, 9.40 per cent, 8.43 per cent, 7.14 per cent and 5.63 per cent, respectively.
However, the stocks of 7UP Bottling Company Plc, Ashaka Cement Plc, Cadbury Nigeria Plc, Capital Hotel Plc and the Nigerian Aviation Handling Company Plc fell by 4.95 per cent, 4.86 per cent and 4.78 per cent, respectively.
Market performance, as measured by the NSE indices, reflected the positive sentiments in the market as most sectors recorded gains. However, the food/beverage and oil/gas sectors declined by 0.27 per cent and 0.18 per cent, accordingly.
“We attribute this rebound to bullish activities on some stocks trading at low prices. We expect the rest of the week to be swayed by mixed investors’ sentiments, possibly skewed more towards bargain-hunting,” analysts at Meristem Securities Limited said in the firm’s daily post.
At the start of the week, the Central Bank of Nigeria conducted an Open Market Operation auction offering N30bn on the 150 day-to-maturity and 318DTM bills. The apex bank eventually sold N22bn and N201bn at respective stop rates of 18 per cent and 18.6 per cent (effective yields: 19.44 per cent and 22.20 per cent).
Despite this, the interbank call rate moderated by 41 basis points to 7.92 per cent. At the foreign exchange interbank market, the naira remained unchanged at N305 and N378 against the dollar for the spot rate and one-year forward rate respectively.
The fixed income market trend remained the same at week open as the bullish sentiment on Treasury bills contrasted with the bearish sentiment in the bond space. Treasury bill yields moderated by eight basis points on the average with the largest declines observed on the mid-dated maturities. Specifically, yields on the 122DTM, 234DTM and 241DTM bills moderated to 15.74 per cent, 18.79 per cent and 19.36 per cent, respectively. Meanwhile, yields on benchmark bonds rose 11 basis points on the average amid advances across the entire space.
Notably, yields on the 8.50 per cent FGN November 2029 and 12.1493 per cent FGN July 2034 bonds climbed by 14 basis points and 16 basis points to close at 16.30 per cent and 16.02 per cent, respectively.
The Debt Management Office released its bond issuance calendar for Q1 2017, outlining an average monthly issuance of N130bn. “While we expect bullish trading to persist in the Treasury bills market amid healthy demand, we believe the higher volume on offer may further pressure bond yields higher in the days ahead,” analysts at vetiva Capital Management Limited said.