Ministry of Finance Dr Muhammed Dikwa during a Public Presentation and Breakdown of the Highlights of the 2020 Budget Proposal in Abuja, Monday
October 14, 2019/Cordros Report
Equities
Nigeria’s equities market began the week on a bullish note, as the benchmark index widened by 0.09% — the largest expansion since Sept. 27 — to 26,557.44 points, following a late cross in DANGCEM. Subsequently, the Month-to-Date and Year-to-Date losses moderated to 3.88% and 15.50%.
Also, the total volume of trades increased by 9.96% to 129.08 million units, valued at NGN2.74 billion and exchanged in 2,595 deals. GSPECPLC was the most traded stock by volume at 36 million units, while NESTLE was the most traded by value at NGN1.39 billion.
Sector performances were mixed, as the Insurance (+1.85%) and Industrial Goods (+0.20%) indices gained, while the Consumer Goods (-0.03%) and Banking (-0.03%) indices declined; the Oil and Gas index closed flat.
Market sentiment, as measured by market breadth, was positive (1.25x) as 10 tickers recorded gains relative to 8 losers. COURTVILLE (+10.00%) and FIDSON (+9.72%) recorded the largest gains while GSPECPLC (-9.72%) and UACN (-6.99%) recorded the largest declines.
Currency
In today’s trading, the naira depreciated by 0.11% against the US dollar to NGN362.29/USD at the I&E FX window but was flat at NGN360.00/USD at the parallel market.
Money market and fixed income
The overnight lending rate widened by 436bps to 16.79%, as system liquidity became strained ahead of the upcoming CBN FX auction across the Wholesale, Invisibles & SME segments.
Activities in the Treasury bills market were bearish as the average yield increased by 10bps to 12.61%. Yield expanded across the short (+10bps), mid (+11bps) and long (+10bps) segment of the curve, following selloffs of the 10DTM (+56bps), 185DTM (+37 bps) and 213DTM (+106bps) instruments, respectively.
Trading in the bond secondary market was mixed, as average was flat at 14.24%. Selloffs of the JAN-2026 (+1bps) and JUL-2034 (+14bps) bonds, led to yield expansion at the mid (+1bps) and long (+3bps) segments of the curve, respectively. Conversely, investors’ interest in the JUL-2021 (-5bps) bond, led to yield contraction at the short (-3bps) end of the curve.
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