STANBIC Drags Nigerian Stocks to -0.1% Decline

Nigerian Stock Exchange Trading Floor. Image Credit: NGX

February 22, 2024/Cordros Report

EQUITIES

Negative sentiments resurfaced in the local bourse today as profit-taking activities in STANBIC (-8.3%) undermined market performance. Thus, the All-Share Index declined by 0.1% to close at 101,239.10 points, with the Month-to-Date and Year-to-Date returns moderating to +0.1% and +35.4%, respectively.

The total volume traded declined by 16.4% to 253.00 million units, valued at NGN4.94 billion, and exchanged in 7,248 deals. FBNH was the most traded stock by volume and value at 31.86 million units and NGN917.27 million, respectively.

Analysing by sectors, the Banking (-0.4%), Insurance (-0.2%) and Consumer Goods (-0.1%) indices settled lower, while the Industrial Goods and Oil & Gas indices closed flat.

As measured by market breadth, market sentiment was negative (0.7x), as 27 tickers lost relative to 19 gainers. DAARCOMM (-10.0%) and WEMABANK (-9.9%) topped the losers’ list, while OMATEK (+10.0%) and SUNUASSUR (+10.0%) recorded the highest gains of the day.

CURRENCY

The naira depreciated by 1.8% to NGN1,571.31/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM).

MONEY MARKET & FIXED INCOME

The overnight lending rate expanded by 108bps to 26.5%, following the debits for the net NTB issuance (NGN1.31 trillion).

The Treasury bills secondary market traded with bearish sentiments, as the average yield expanded by 128bps to 16.7%. Across the curve, the average yield increased at the short (+113bps), mid (+169bps) and long (+116bps) segments due to sell pressures on the 63DTM (+258bps), 126DTM (+305bps) and 196DTM (+184bps) bills, respectively. Elsewhere, the average yield was pared by 1bp to 17.8% in the OMO segment.

Similarly, the Treasury bond secondary market closed on a bearish note, as the average yield advanced by 34bps to 16.7%. Across the benchmark curve, the average yield expanded at the short (+81bps), mid (+52bps) and long (+1bp) segments as market participants sold off the MAR-2025 (+392bps), APR-2032 (+265bps) and MAR-2035 (+251bps) bonds, respectively.

Kindly see below our Mutual Fund prices and returns as of today.

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