Positive trading session ends February activities at Nigerian Stock Exchange
EQUITIES
The equities market closed the month with a positive trading session, as the ASI (43,330.54 points) recorded its largest gain in the month of February, 2.44%, following interests in large cap stocks.
However, the Month-to-Date return remained negative at -2.28%, while the Year-to-Date return stood at 13.30%.
All sector indices closed positive, with interest in DANGCEM (+4.98%) buoying the Industrial Goods (+4.17%) index. The Consumer Goods (+2.45%), Banking (+0.78%), Oil & Gas (+0.22%), and Insurance (+0.09%) indices followed suit, driven by demand for the shares of NB (+4.46%), ZENITHBANK (+1.75%), SEPLAT (+0.40%), and NEM (+5.00%) respectively.
Market breadth turned positive with 31 gainers and 22 losers, led by CCNN (+8.52%) and COURTVILLE (-6.90%) respectively. Total volume of trades increased by 30.37% to 571.87 million units, valued at NGN10.80 billion, and exchanged in 5,142 deals.
As we anticipate corporate earnings releases, we look to sustained gains in the equities market, amidst still-positive macroeconomic fundamentals.
CURRENCY
The USD/NGN appreciated by 0.07% to NGN360.41, while it remained flat at NGN363 in the parallel market. Total volume of trades in the I&E FX window surged 108.98% to USD427 million in the I&E FX window. Meanwhile the apex bank injected USD210 million into the FX market yesterday, comprising USD100 million, USD55 million, and USD55 million disbursements to the wholesale, SMEs, and invisibles windows, respectively.
FIXED INCOME AND MONEY MARKET
The overnight lending rate dropped by 107 bps to 4.5%, following (1) an increase in market liquidity levels (+151% to N507.80 billion), and (2) anticipation of tomorrow’s inflow via maturing OMO bills worth NGN 109.38 billion.
Average yield closed flat in the treasury bills market, remaining at 14.21%. Yields contracted across the short (-2 bps) end of the curve. The mid (+3 bps) end saw yield expansion while the long end was flat. Notable bills include the 50D (-45 bps) and the 92D (+46 bps) bills. At today’s NTB auction, without notice, the CBN reduced the offered amount of the 364-day bill (from NGN222.08 billion to NGN52.00 billion) and increased the offered amount of both the 91-day (from NGN7.89 billion to N13.00 billion) and 182-day (from NGN30.00 billion to NGN64.99 billion) bills. Reflecting both the increased liquidity position and reduced supply (of the one-year bill), yields closed lower across the 91-day (11.85%; previously 11.95%), 182-day (13.50%; previously 13.65%), and 364-day (13.50%; previously 13.70%) bills – with respective allotments of NGN13.00 billion, NGN65.91 billion and NGN52.00 billion.
Average yield in the bond market also closed flat, remaining at 13.68%. Yield expansion at the short (+2 bps) and mid (+less than 1 bp) ends of the curve outweighed contraction at the long (-1 bp) segment. Notable bonds include the JAN-2022 (+6 bps), MAR-2024 (+1bp), and MAR-2027 (-2 bps) respectively.
