According to reports from online sources the Nigerian equities market closed flat, with the All Share Index unchanged at 25,514.03 points. as at the 23rd of March 2017. Consequently, the Month-to-Date and Year-to-Date gain remained unchanged at 0.73% and -5.06% respectively as at press time.
It was reported that Industrial Goods gained (+3.38%) index fired on, as WAPCO (+8.47%) become an amazement for investors. The Consumer Goods (+0.23%) and Insurance (+0.08%) indices recorded gains as well, following the demand for NESTLE (+1.22%) and AIICO (+1.82%) respectively. On the negative side, the Oil & Gas (-3.58%) and Banking (-0.04%) indices shed some losses as at press time, following selloffs in SEPLAT (-9.73%), FO (-1.77%), ZENITHBANK (-1.45%) and ACCESS (-3.58%) respectively
General Market breadth indicators was positive, with 20 gainers as against 14 losers. Total volume traded fall by 42.11% to 115.11 million shares, valued at N1.42 billion, in a of 2,861 deals.
We expect the market to close on a positive note for the week.
On the currency market the apex bank announced earlier in the day that it will sell USD 100 million in 60-day currency forwards on the interbank market through commercial lenders. Despite that, it was business as usual in the currency market, with the naira — in the interbank space — declining against the three major currencies we got their report. The NGN/USD (-0.08%), NGN/GBP (-1.76%), and NGN/EUR (-3.10%) weakened to N308.00, N399.50, and N342.40 respectively. In the parallel market segment, the LCY appreciated further, as the NGN/USD (+2.44%), NGN/GBP (+1.96%) and NGN/EUR (+1.15%) strengthened to N400.00, N500.00, and N430.00 respectively.
FIXED INCOME AND MONEY MARKET
In the overnight money market rate expanded by 750bps to 51.92%, from previous close of 44.42%. Although updated system liquidity figures were not available at the time of filling this report, we assumed that the overnight rate was sensitive to the debit for FX sales by the CBN.
Investors were downbeat in the NTB space, with average yield expanding by 23bps to 17.31%. There were selloffs at all — short (+48bps), mid (+27bps), and long (+6bs) — segments of the curve, driven by the 25-MAY-17 (+146bps to 17.43%), 13-JUL-17 (+117bps to 18.46%) and 23-NOV-17 (+25bps to 18.70%) bills respectively. At yesterday’s NTB auction, the apex bank fully allotted N134.98 billion across the 91-day (N28.12 billion), 182-day (N23.68 billion), and 364-day (N83.17 billion) bills. The stop rates on the 91-day (13.55% vs. 13.60%) bill came in lower, while the 364-day (18.69% vs. 18.56%) bill recorded a higher stop rate compared to the previous auction. The stop rate on the 182-day (17.20% vs. 17.20%) bill was unchanged from the last auctions. Noteworthy, the 182-day and 364-day bills were oversubscribed by N4.62 billion and N7.21 billion respectively, while the 91-day was under subscribed by N11.07 billion.
In the bonds market it ended on a negative note. Average yield expanded by 8bps to 16.60%, as there was a huge selloffs at the short term (+54bps) end doused snippets of demand at the intermediate (-4bps) and longer (-8bps) segments. At the short end, the APR 2017 (+124bps to 17.43%) bond recorded the largest yield expansion, while the JAN 2026 (-11bps to 15.95%) and MAR 36 (-10bps to 15.95%) bonds recorded the largest yield contraction at the intermediate and long segments. Yesterday, the DMO published the allotment result of the FGN Savings Bond on its website, revealing that it allotted N2.07 billion of the FGNSB MAR 2019 at 13.01% coupon, with reported successful subscriptions of 2,575. in the weeks ahead we some recovery taking place because of intervention from the government.
featured image is from google image.