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FSDH Market Wrap- November 12, 2021

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November 12, 2021/FSDH Report

Market Wrap 
12 November 2021
The Nigerian equity market closed on a negative note today as All Share Index decreased by 0.68 percent to close at 43,253.01 points. The market cap of equities listed on the NGX declined to ₦22.572 trillion from ₦22.729 trillion as on the previous day. The total volume traded closed with an exchange of 314.852 million units valued at ₦4.65 billion traded in 3,400 deals. However, the market breadth was positive with 16 gainers as against 15 losers.
The NGX 30 Index decreased by 0.79 percent to close at 1,775.51 points as against 1,789.66 points as on the previous day. Market turnover closed with traded volume of 250.43 million units. FBNH and UBA were the key gainers, while MTNN and United Capital were the key losers.
Company Performance (NGX 30)
As of November 12, the Overnight (O/N) rate increased by 13.25 percent to close at 15.25 percent as against the last close of 2.00 percent, and the Open Buy Back (OBB) rate increased by 12.83 percent to close at 14.50 percent compared to 1.67 percent on the previous day. Money market rates increased by an average of 1304 bps following the FX retail auction by the CBN.
 
FX: At the I&E FX market, Naira depreciated by 0.09 percent as the dollar was quoted at ₦415.10 as against the last close of ₦414.73. Most participants maintained bids between ₦405.00 and ₦444.00 per dollar.
NT-Bills secondary market closed on a mildly negative note with average yield across the curve increasing by 7 bps to close at 5.19 percent from 5.12 percent on the previous day. Average yields across medium-term and long-term maturities expanded by 4 bps and 12 bps, respectively. However, the average yield across the short-term maturities compressed by 3 bps. Yields on 13 bills advanced with the 25-Aug-22 maturity bill recording the highest yield increase of 22 bps, while yields on 4 bills remained unchanged.
 
In the OMO bills market, the average yield across the curve decreased by 33 bps to close at 5.62 percent as against the last close of 5.95 percent. Average yields across short-term, medium-term, and long-term maturities declined by 36 bps, 31 bps, and 20 bps, respectively. Yields on 17 bills fell with the 23-Nov-21 maturity bill recording the highest yield decrease of 39 bps.
FGN bonds secondary market closed on a flat note today, as the average bond yield across the curve closed flat at 8.31 percent. Average yields across short tenor, medium tenor, and long tenor of the curve remained unchanged. The FGNSB 13-NOV-2021 bond was the best performer with a decrease in the yield of 9 bps, while the FGNSB 15-MAY-2022 bond was the worst performer with an increase in yield of 10 bps.
 
United Bank for Africa Plc (UBA) has successfully raised $300 million through its recently announced $1.5 billion global medium-term note programme. Net proceeds will be used to repay the outstanding debt. The 5-year senior unsecured notes (144A/Reg S) were issued at a coupon of 6.750 percent. The unsecured notes were listed on the London Stock Exchange and have received a ‘B’ rating from Fitch and a ‘B-‘ rating from S&P. The offering was announced on November 8 and received global investor interest (orderbooks were 1.7x oversubscribed). Moreover, the new issue was launched alongside a tender offer on the outstanding $500 million, 7.750 percent notes due 2022. The expiration date of the cash tender offer is November 16. Citibank, Mashreqbank, Renaissance Capital and Standard Chartered Bank are acting as Dealer Managers on the Tender Offer.

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