November 23, 2021/FSDH
The Nigerian equity market closed on a negative note today as All Share Index marginally decreased by 0.01 percent to close at 43,255.14 points. The market cap of equities listed on the NGX remained unchanged at ₦22.576 trillion. The total volume traded closed with an exchange of 217.973 million units valued at ₦2.91 billion traded in 4,158 deals. The market breadth was positive with 19 gainers as against 15 losers.
The NGX 30 Index marginally increased by 0.01 percent to close at 1,759.02 points as against 1,758.80 points as on the previous day. Market turnover closed with traded volume of 135.00 million units. Flour Mills and Access were the key gainers, while Fidelity and International Breweries were the key losers.
Company Performance (NGX 30)
As of November 23, the Overnight (O/N) rate decreased by 0.98 percent to close at 16.02 percent as against the last close of 17.00 percent, and the Open Buy Back (OBB) rate decreased by 1.33 percent to close at 15.00 percent compared to 16.33 percent on the previous day.
The CBN earlier today concluded its sixth Monetary Policy Committee (MPC) meeting for the current year. The committee unanimously voted to retain Monetary Policy Rate (MPR) at 11.5 percent, with the asymmetric corridor retained at +100/-700 bps around the MPR. The Cash Reserve Ratio (CRR) and Liquidity ratio were unchanged at 27.5 percent and 30.0 percent, respectively.
FMDQ Exchange has approved the quotation of Valency Agro Nigeria Limited’s ₦4.57 billion series 2 and ₦2.67 billion series 3 commercial papers under the Company’s ₦20.00 billion commercial papers programme on its platform. The net proceeds will be used for short-term financing requirements.
FX: At the I&E FX market, Naira appreciated by 0.06 percent as the dollar was quoted at ₦414.80 as against the last close of ₦415.07. Most participants maintained bids between ₦404.00 and ₦453.10 per dollar.
NT-Bills secondary market closed on a flat note with average yield across the curve remaining unchanged at 5.10 percent. Average yields across short-term, medium-term, and long-term maturities closed flat at 3.96 percent, 4.80 percent, and 5.82 percent, respectively. Tomorrow, the CBN is scheduled to conduct a Primary Market Auction to roll over NT-bills maturities worth ₦118.73 billion across 91-day (₦3.54 billion), 182-day (₦4.12 billion), and 364-day (₦111.07 billion) tenors.
In the OMO bills market, the average yield across the curve increased by 1 basis point to close at 5.49 percent as against the last close of 5.48 percent. Average yield across the long-term maturities expanded by 11 bps as OMO 4-Oct-22 (+22 bps) maturity bill witnessed selling pressure. However, the average yields across short-term and medium-term maturities closed flat at 5.36 percent and 5.54 percent, respectively.
FGN bonds secondary market closed on a flat note today, as the average bond yield across the curve closed flat at 8.43 percent. Average yields across short tenor and medium tenor of the curve remained unchanged. However, the average yield across the long tenor of the curve mildly increased by 2 bps.
This year, the DMO has a domestic funding target of ₦2.74 trillion (including the supplementary budget). To date, the DMO has raised ₦2.60 trillion at its bond auctions, including non-competitive sales to public agencies. Considering year-to-date FGN bond sales, the DMO is well placed to achieve the target even without the small sums it makes from the sale of other instruments such as Sukuk and green bonds.
