Image Credit: FSDH
December 3, 2021/FSDH Research
The Nigerian equity market closed on a negative note today as All Share Index decreased by 0.19 percent to close at 42,167.91 points. The market cap of equities listed on the NGX declined to ₦22.003 trillion from ₦22.045 trillion as on the previous day. The total volume traded closed with an exchange of 180.953 million units valued at ₦2.43 billion traded in 4,019 deals. The market breadth was negative with 13 gainers as against 18 losers.
The NGX 30 Index decreased by 0.38 percent to close at 1,691.51 points as against 1,697.88 points as on the previous day. Market turnover closed with traded volume of 114.74 million units. UBN and United Capital were the key gainers, while FBNH and Guaranty were the key losers.
Company Performance (NGX 30)
As of December 3, the Overnight (O/N) rate increased by 0.25 percent to close at 15.75 percent as against the last close of 15.50 percent, and the Open Buy Back (OBB) rate increased by 0.50 percent to close at 15.50 percent compared to 15.00 percent on the previous day.
FX: At the I&E FX market, Naira appreciated by 0.02 percent as the dollar was quoted at ₦414.73 as against the last close of ₦414.80. Most participants maintained bids between ₦404.00 and ₦444.00 per dollar.
NT-Bills secondary market closed on a flat note with average yield across the curve closing flat at 4.51 percent. Average yield across the long-term maturities declined by 1 basis point. However, the average yields across short-term and medium-term maturities remained unchanged at 3.52 percent and 3.74 percent, respectively. NTB 8-Sep-22 (-8 bps) maturity bill witnessed mild buying interest, while yields on 21 bills remained unchanged.
In the OMO bills market, the average yield across the curve decreased by 3 bps to close at 5.48 percent as against the last close of 5.51 percent. Average yield across the short-term maturities declined by 4 bps. However, the average yields across medium-term and long-term maturities remained unchanged at 5.55 percent and 6.14 percent, respectively. OMO 15-Feb-22 (-29 bps) and OMO 8-Feb-22 (-10 bps) maturity bills witnessed buying interest, while yields on 12 bills remained unchanged.
Moreover, the CBN held an OMO auction on December 2, selling bills worth ₦37.00 billion across the 110-day (₦7.00 billion), 180-day (₦10.00 billion), and 355-day (₦20.00 billion) tenors with the stop rates remaining unchanged at 7.00 percent, 8.50 percent, and 10.10 percent, respectively. The auction was oversubscribed, indicating a subscription level of 182 percent (₦72.78 billion). Demand was skewed towards long tenor maturity bills with bid-to-cover ratios settling at 0.70x (110-day), 1.25x (180-day), and 2.66x (355-day).
FGN bonds secondary market closed on a mildly negative note today, as the average bond yield across the curve cleared higher by 7 bps to close at 8.00 percent from 7.93 percent on the previous day. Average yields across short tenor and medium tenor of the curve increased by 9 bps and 1 basis point, respectively. However, the average yield across the long tenor of the curve decreased by 1 basis point.
The FGNSB 11-DEC-2021 bond was the best performer with a decrease in the yield of 47 bps, while the 23-MAR-2025 maturity bond was the worst performer with an increase in yield of 103 bps. Going into next week, the secondary bond market is likely to remain subdued in the short term.
