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December 15, 2021/FSDH Research

The Nigerian equity market closed on a positive note today as All Share Index marginally increased by 0.09 percent to close at 42,357.36 points. The market cap of equities listed on the NGX increased to ₦22.102 trillion from ₦22.081 trillion as on the previous day. The total volume traded closed with an exchange of 226.180 million units valued at ₦2.63 billion traded in 3,476 deals. The market breadth was positive with 19 gainers as against 13 losers.

The NGX 30 Index marginally increased by 0.08 percent to close at 1,704.13 points as against 1,702.76 points as on the previous day. Market turnover closed with traded volume of 154.01 million units. FCMB and Dangote Sugar were the key gainers, while International Breweries and UBN were the key losers.

Company Performance (NGX 30)

As of December 15, the Overnight (O/N) rate decreased by 0.75 percent to close at 13.50 percent as against the last close of 14.25 percent, and the Open Repo (OPR) rate also decreased by 0.75 percent to close at 13.00 percent compared to 13.75 percent on the previous day.
 
The National Bureau of Statistics (NBS) released its November 2021 inflation report, indicating a decrease of 0.59 percent in the headline inflation rate to 15.40 percent from 15.99 percent recorded in October 2021. The Core inflation, which excludes volatile agricultural produce prices, stood at 13.85 percent in November 2021, up by 0.61 percent compared to 13.24 percent in October 2021. The composite food index rose by 17.21 percent year-on-year in November 2021 compared to 18.34 percent year-on-year in October 2021.
 
FX: At the I&E FX market, Naira appreciated by 0.13 percent as the dollar was quoted at ₦414.25 as against the last close of ₦414.80. Most participants maintained bids between ₦405.00 and ₦444.00 per dollar.

NT-Bills secondary market closed on a flat note with average yield across the curve remaining unchanged at 4.48 percent. Average yields across short-term, medium-term, and long-term maturities closed flat at 3.39 percent, 3.98 percent, and 5.31 percent, respectively.
 
In the OMO bills market, the average yield across the curve decreased by 3 bps to close at 5.45 percent as against the last close of 5.48 percent. Average yield across the short-term maturities declined by 3 bps. However, the average yields across medium-term and long-term maturities remained unchanged at 5.51 percent and 5.54 percent, respectively. OMO 8-Feb-22 (-38 bps) maturity bills witnessed buying interest, while yields on 13 bills remained unchanged. 

FGN bonds secondary market closed on a mildly negative note today, as the average bond yield across the curve cleared higher by 1 basis point to close at 8.11 percent from 8.10 percent on the previous day. Average yields across medium tenor and long tenor of the curve increased by 1 basis point and 6 bps, respectively. However, the average yield across the short tenor of the curve remained unchanged. The 18-APR-2037 maturity bond was the worst performer with an increase in yield of 21 bps.
 
According to the DMO, the country’s total public debt portfolio has increased to ₦38.005 trillion as of September 30, 2021, from ₦35.465 trillion as of June 30, 2021, mainly due to the $4 billion Eurobonds issuance by the FGN in September 2021. It should be noted that the issuance of the $4 billion Eurobonds has brought significant benefits to the economy by increasing the level of Nigeria’s External Reserves, thereby supporting the Naira Exchange Rate and providing the necessary capital to enable the Federal Government finance various projects in the Budget.