January 4, 2022/FSDH Research
The Nigerian equity market closed on a positive note today as All Share Index increased by 0.73 percent to close at 43,026.23 points. The market cap of equities listed on the NGX increased to ₦23.184 trillion from ₦22.297 trillion as on the previous close. The total volume traded closed with an exchange of 216.651 million units valued at ₦1.52 billion traded in 4,080 deals. However, the market breadth was negative with 18 gainers as against 27 losers.
The NGX 30 Index increased by 1.10 percent to close at 1,741.29 points as against 1,722.30 points as on the previous close. Market turnover closed with traded volume of 67.73 million units. BUA Cement and Stanbic IBTC were the key gainers, while FCMB and Nigerian Breweries were the key losers.
Company Performance (NGX 30)
As of January 4, the Overnight (O/N) rate decreased by 3.00 percent to close at 7.50 percent as against the last close of 10.50 percent, and the Open Repo (OPR) rate decreased by 3.33 percent to close at 6.67 percent compared to 10.00 percent on the previous day. As system liquidity has improved with OMO repayment of ₦70.00 billion, the money market rates are likely to remain subdued, barring any mop-up activity by the CBN.
FMDQ Exchange has approved the quotation of the DLM Capital Group Limited’s ₦1.24 billion series 1 and ₦1.01 billion series 2 commercial papers under its ₦20.00 billion commercial paper issuance programme on its platform. The proceeds will be used to support the company’s growing retail and consumer finance business.
FX: At the I&E FX market, Naira appreciated by 2.84 percent as the dollar was quoted at ₦422.67 as against the last close of ₦435.00. Most participants maintained bids between ₦400.00 and ₦445.60 per dollar.
NT-Bills secondary market closed on a flat note with average yield across the curve remaining unchanged at 4.50 percent. Average yields across short-term, medium-term, and long-term maturities remained unchanged at 3.57 percent, 4.12 percent, and 5.29 percent, respectively.
In the OMO bills market, the average yield across the curve closed flat at 5.50 percent. Average yields across short-term and long-term maturities remained unchanged at 5.49 percent and 5.52 percent, respectively.
FGN bonds secondary market closed on a mildly negative note today, as the average bond yield across the curve cleared higher by 3 bps to close at 11.89 percent from 11.86 percent on the previous day. Average yield across the long tenor of the curve increased by 6 bps. However, the average yields across short tenor and medium tenor of the curve decreased by 2 bps and 1 basis point, respectively.
The 27-APR-2023 maturity bond was the best performer with a decrease in the yield of 4 bps, while the 26-APR-2049 maturity bond was the worst performer with an increase in yield of 40 bps. Furthermore, the secondary bond market is likely to remain subdued in the short term.
