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FSDH Market Wrap- November 15, 2021

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November 15, 2021/FSDH Report

Market Wrap 
15 November 2021
The Nigerian equity market closed on a negative note today as All Share Index marginally decreased by 0.05 percent to close at 43,230.34 points. The market cap of equities listed on the NGX declined to ₦22.560 trillion from ₦22.572 trillion as on the previous day. The total volume traded closed with an exchange of 293.430 million units valued at ₦4.29 billion traded in 4,239 deals. However, the market breadth was positive with 20 gainers as against 14 losers.
The NGX 30 Index marginally decreased by 0.05 percent to close at 1,774.57 points as against 1,775.51 points as on the previous day. Market turnover closed with traded volume of 246.95 million units. FBNH and Flour Mills were the key gainers, while UBA and Ecobank were the key losers.
Company Performance (NGX 30)
As of November 15, the Overnight (O/N) rate decreased by 1.50 percent to close at 13.75 percent as against the last close of 15.25 percent, and the Open Buy Back (OBB) rate decreased by 1.25 percent to close at 13.25 percent compared to 14.50 percent on the previous day.
 
The National Bureau of Statistics (NBS) released its October 2021 inflation report, indicating a decrease of 0.64 percent in the headline inflation rate to 15.99 percent from 16.63 percent recorded in September 2021. The Core inflation, which excludes volatile agricultural produce prices, stood at 13.24 percent in October 2021, down by 0.50 percent when compared with 13.74 percent in September 2021. The composite food index rose by 18.34 percent year-on-year in October 2021 compared to 19.57 percent in September 2021.
 
Neveah Limited has successfully registered ₦10 billion commercial paper issuance with the FMDQ Exchange. The Company is a registered exporter of agro-commodities and minerals with the Nigerian Export Promotion Council (NEPC) and has attained an investment-grade rating from Data Pro. The net proceeds will be used to fund short-term working capital needs.
 
FX: At the I&E FX market, Naira remained unchanged at ₦415.10. Most participants maintained bids between ₦404.57 and ₦444.00 per dollar.
NT-Bills secondary market closed on a flat note, with the average yield across the curve closing flat at 5.18 percent. Average yields across short-term and medium-term maturities remained unchanged at 3.70 percent and 4.62 percent, respectively. However, the average yield across the long-term maturities declined by 1 basis point. NTB 25-Aug-22 (-6 bps) maturity bill witnessed mild buying interest.
 
In the OMO bills market, the average yield across the curve decreased by 11 bps to close at 5.51 percent as against the last close of 5.62 percent. Average yields across medium-term and long-term maturities declined by 12 and 41 bps, respectively. However, the average yield across the short-term maturities closed flat. Yields on 15 bills fell with the 4-Oct-22 maturity bill recording the highest yield decrease of 45 bps.
FGN bonds secondary market closed on a mildly positive note today, as the average bond yield across the curve cleared lower by 1 basis point to close at 8.45 percent from 8.46 percent on the previous day. Average yield across the short tenor of the curve decreased by 1 basis point. However, the average yields across the medium tenor and long tenor of the curve increased by 1 basis point each.
 
The FGNSB 10-MAR-2023 and FGNSB 11-MAR-2023 bonds were the best performers with a decrease in the yield of 3 bps each, while the 23-JUL-2030 maturity bond was the worst performer with an increase in yield of 6 bps. Moreover, the secondary bond market is likely to remain subdued in short term.

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