EQUITIES
Bullish sentiments persisted in the equities market, with the ASI closing higher by 0.22% to 43, 609.77 points, following sustained demands for major stocks.
Accordingly, the Month-to-Date and Year-to-Date returns improved to 0.64% and 14.03% respectively.
The Oil & Gas (+1.44%) index recorded the largest gain, while the Consumer Goods (+0.94%), Insurance (+0.08%), and Industrial Goods (+0.01%) indices followed suit, driven by interest in the shares of SEPLAT (+3.29%), UNILEVER (+10.17%), HMARKINS (+6.45%), and CCNN (+0.76%) respectively. Meanwhile, the Banking (-0.33%) index closed negative, as investors booked profit in the shares of ACCESS (-2.23%) and GUARANTY (-1.72%).
Market breadth was negative, with 29 losers and 26 gainers, led by REGALINS (-9.09%) and UNILEVER (+10.17%). Total volume of trades increased by 76.75% to 445.50 million units, valued at NGN5.963 billion, and exchanged in 5,078 deals.
Our theme on the equities market remains positive, on the backdrop of still-positive macroeconomic fundamentals and expected positive corporate releases.
CURRENCY
The naira strengthened against the dollar by 0.10% to NGN360.45 in the I&E FX window, while it closed flat at NGN362 in the parallel market. Total turnover in the I&E FX window was higher by 48% to USD199.36 million, with trades settled within the range of NGN330.00 and NGN361.50.
FIXED INCOME AND MONEY MARKET
The overnight lending rate expanded further by 75 bps to 13.42%. The CBN mopped up excess liquidity via OMO auction, selling a total of NGN67.77 billion of the 219DTM bill. NGN50bn of the 114DTM bill was also offered. However, there were no sales.
Trading was mixed in the NTB market, albeit with a bullish tilt, as average yield shed 1 bp to close at 15.03%. Demand for the 163DTM (-11 bps) and 191DTM (-12 bps) bills led to yield contractions at the mid (-2 bps) and long (-1 bp) ends of the curve, respectively. Yields at the short end were flat.
Proceedings turned bearish in the bond market, as average yield rose by 3 bp to 13.68%. There were yield expansions at the short (+6 bps) and mid (+2 bps) ends of the curve, driven by selloffs of the JUL-2021 (+ 15 bps) and JAN-2026 (+5 bps) bonds. Yields at the long segment were flat.
