September 27, 2022/FSDH Report
The Nigerian equity market closed on a negative note today as All Share Index marginally decreased by 0.06 percent to close at 49,161.45. The market cap of equities listed on the NGX decreased to ₦26.517 trillion from ₦26.532 trillion as on the previous close. The total volume traded closed with an exchange of 139.240 million units valued at ₦1.60 billion traded in 3,421 deals. The market breadth was negative with 14 gainers as against 17 losers.
The NGX 30 Index marginally decreased by 0.09 percent to close at 1,751.56 points as against 1,753.09 points at the previous close. Market turnover closed with a traded volume of 95.21 million units. United Capital and Zenith were the only gainers, while Unilever and Access were the key losers.
Company Performance (NGX 30)
As of September 27, the Overnight (O/N) rate remained unchanged at 15.00 percent, while the Open Repo (OPR) rate decreased by 0.50 percent to close at 14.00 percent as against the previous close of 14.50 percent.
The CBN earlier concluded its fifth Monetary Policy Committee (MPC) meeting for the current year. The committee unanimously voted to hike the Monetary Policy Rate (MPR) by 150 bps to 15.50 percent due to rising inflation. However, the asymmetric corridor was retained at +100/-700 bps around the MPR. Furthermore, the Cash Reserve Ratio (CRR) was raised to a minimum of 32.5 percent, while the Liquidity ratio was retained at 30.0 percent.
FX: At the I&E FX market, Naira depreciated by 0.08 percent as the dollar was quoted at ₦436.33 as against the last close of ₦436.00. Most participants maintained bids between ₦423.00 and ₦441.00 per dollar.
NT-Bills secondary market closed on a flat note with the average yield across the curve closing flat at 7.44 percent. Average yields across short-term, medium-term, and long-term maturities closed flat at 6.48 percent, 9.44 percent, and 6.08 percent, respectively.
OMO bills secondary market closed on a mildly negative note today, as the average yield across the curve cleared higher by 3 bps to close at 9.72 percent from 9.69 percent on the previous day. Average yield across the short-term maturities increased by 10 bps. However, the average yields across medium-term and long-term maturities closed flat at 10.93 percent and 11.12 percent, respectively. OMO 4-Oct-22 maturity bill witnessed selling pressure, with a yield increase of 10 bps.
FGN bonds secondary market closed on a mildly negative note today, as the average bond yield across the curve cleared higher by 4 bps to close at 13.41 percent from 13.37 percent on the previous day. Average yields across medium tenor and long tenor of the curve increased by 15 bps and 1 basis point, respectively. However, the average yield across the short tenor of the curve declined by 9 bps. The 23-MAR-2025 maturity bond was the best performer with a decrease in the yield of 18 bps, while the 26-APR-2029 maturity bond was the worst performer with an increase in the yield of 61 bps.
The DMO has released its FGN Bonds Issuance Calendar for the fourth quarter of 2022. The DMO is expected to offer bonds worth between ₦630-₦720 billion during the quarter through the re-opening of 10-Year FGN APR 2029 (₦210-₦240 billion), 10-year FGN APR 2032 (₦210-₦240 billion), and 20-year FGN APR 2037 (₦210-₦240 billion) tenors.
