The domestic bourse halted the three-day gaining streak, as the ASI contracted by 0.03% to 36,877.15 points, following profit taking in consumer and industrial goods stocks.
- Accordingly, the Month-to-Date and Year-to-Date returns moderated to 0.54% and 37.22% respectively.
- The Consumer Goods (-1.21%) and Industrial Goods (-0.11%) indices closed negative, following profit taking in the shares of PZ (-4.02%) and DANGCEM (0.22%) respectively. On the flip side, the Banking (+1.15%) and Insurance (+0.67%) indices closed positive, following demand for the shares of FBNH (9.22%) and MANSARD (+2.94%) respectively. Meanwhile, the Oil & Gas index closed flat.
- However, market breadth was positive with 27 gainers and 18 losers, led by FBNH (+9.22%) and CUSTODYINS (-5.00%). Total volume traded increased by 27.59% to 318.14 million units, valued at N3.95 billion, and exchanged in 5,472 deals.
- Despite profit taking in today’s session, we believe legroom for demand still exists on the back of strong market fundamentals and improving macroeconomic conditions.
CURRENCY
- The naira appreciated by 0.05% to N360.23 in the I&E FX window, while it remained flat at N363 in the parallel market. Total volume traded in the I&E FX window stood at USD165.83 million, exchanged within the range of N356.00 and N361.50.
FIXED INCOME AND MONEY MARKET
- The overnight money market rate contracted by 317 bps to 7.00%, following the inflow of matured OMO bills worth N401.47 billion — inclusive of a special OMO maturity worth N300 billion – which subdued the outflow via OMO sales worth N113.68 billion.
- Reflective of the improvement in liquidity position, proceedings remained broadly bullish in the NTB space, as average yield declined 5 bps to 17.43%. Yields contracted across all ends of the curve – short (-9 bps), mid (-6 bps), and long (-2 bps) – driven by demand for the 77DTM (-71 bps), 182DTM (-17 bps), and 224DTM (-30 bps) bills, respectively.
- Similarly, investors remained upbeat in the bond market, with average yield dropping 2 bps to 14.91%. Interest in the 29-JUN-2019 (-9 bps), 13-FEB-2020 (-13 bps), and 27-JAN-2022 (-2bps) bonds, caused yields to contract at the short (-9 bps), mid (-6 bps), and long (less than 1 bp) segments, respectively.
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