February 1, 2022/FSDH Research

The Nigerian equity market closed on a positive note today as All Share Index increased by 1.04 percent to close at 47,111.21 points. The market cap of equities listed on the NGX increased to ₦25.387 trillion from ₦25.124 trillion as on the previous close. The total volume traded closed with an exchange of 341.516 million units valued at ₦3.69 billion traded in 6,417 deals. The market breadth was positive with 36 gainers as against 21 losers.

The NGX 30 Index increased by 1.50 percent to close at 1,801.41 points as against 1,774.74 points on the previous close. Market turnover closed with traded volume of 138.72 million units. Seplat and Presco were the key gainers, while Ecobank and UBN were the key losers.

As of February 1, the Overnight (O/N) rate decreased by 5.75 percent to close at 2.25 percent as against the last close of 8.00 percent, and the Open Repo (OPR) rate decreased by 5.50 percent to close at 2.00 percent compared to 7.50 percent on the previous day. As system liquidity has improved with OMO repayment of ₦102.225 billion, the money market rates are likely to remain subdued, barring any mop-up activity by the CBN.
 
FX: At the I&E FX market, Naira depreciated by 0.10 percent as the dollar was quoted at ₦415.75 as against the last close of ₦415.33. Most participants maintained bids between ₦408.00 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 remained unchanged at 3.68 percent, 4.05 percent, and 5.40 percent, respectively.
 
In the OMO bills market, the average yield across the curve closed flat at 5.68 percent. Average yields across short-term and long-term maturities remained unchanged at 5.42 percent and 5.81 percent, respectively. 

FGN bonds secondary market closed on a flat note today, as the average bond yield across the curve closed flat at 11.53 percent. Average yield across the short tenor of the curve expanded by 1 basis point. However, the average yields across medium tenor and long tenor of the curve remained unchanged. The 14-MAR-2024 maturity bond was the best performer with a decrease in the yield of 1 basis point, while the 27-APR-2023 maturity bond was the worst performer with an increase in the yield of 4 bps.
 
Nigerian Exchange Limited has listed the Federal Government of Nigeria’s $4 billion Eurobonds on January 31. The Eurobonds were issued in three tranches: 7-years $1.25 billion at 6.125 percent p.a., 12-years $1.5 billion at 7.375 percent p.a., and 30-years $1.25 billion at 8.250 percent p.a., as part of the fund-raising for the implementation of the 2021 Appropriation Act. The bonds were issued via the Debt Management Office with Chapel Hill Denham Advisory Limited acting as Domestic Book runner and FSDH Merchant Bank Limited as Financial Adviser.