Positive Sentiments Sustained As Equities Market Gains ₦213.37bn, ASI Appreciates By 1.03%

Equities market closed the day’s trading session in the green zone as the NSE All-Share Index and Market Capitalisation appreciated by 1.03% to close at 39,512.31 and ₦20.66 trillion respectively.

The Year-to-Date (YtD) and the Quarter-to-Date (QtD) returns stand at 47.20% and 47.26%, while the Month-to-Date (MTD) and Week-to-Date returns stand at 12.76%and 1.84% respectively.

NSE Sector Indices:

Of all the Industries on the NSE within our coverage, 3 sectors advanced in points, while 2 sectors declined. The NSE sector indices that advanced in points were NSE INSURANCE (+2.99%), NSE 30 (+1.26%), and NSE CONSUMER GOODS (+0.36%), while the sectors that declined in points were NSE OIL &GAS (-0.39%), and NSE BANKING (-0.71%).

The market breadth (gainers/losers) of 1.28x for the day indicates that the number of buyers outpaced the number of sellers in the market today. At the end of the day’s trading, 23 stocks advanced as 19 stocks declined; BUACEMENT (+10.00%), ETERNA (+10.00%) and INTBREW (+10.00%) led the gainers’ chart while FTNCOCOA (-9.88%), DEAPCAP (-7.41%) and HONYFLOUR (-6.77%) led the losers’ chart for the day.

The day’s trading activities by volume was led by UBA (60.57million), DANGCEM (33.17million) and ZENITH BANK (27.54million) while the activity by value was led by DANGCEM (₦8.04billion), ZENITH BANK (₦0.69billion) and UBA (₦0.52billion).

Outlook:

Positive sentiments sustained as the equities market gained ₦213.37bn, ASI appreciated by 1.03%. Optimisms persist that the bulls will recover the market in the coming days. We, therefore, advise our clients not to engage in panic selling as we expect the equity market to maintain positive growth due to the expectation of dividend payment in early 2021 and lower yields in the fixed income market.

FIXED INCOME REPORT AS AT DECEMBER 29, 2020

Treasury Bills Market:

In the treasury bills markets, the average yield remains unchanged as it closed at 0.39% today (vs. 0.39% average market yield of last trading session). At the end of the trading session today, the 11-Mar-21, 10-Jun-21 and 28-Oct-21 bills closed at 0.34% (0.00%), 0.19% (0.00%), and 0.63% (0.00%) respectively.

FGN Bond Market:

In the bond market, the average market yield increased by an average of 93bps as it closed at 4.83% as against 4.71% of the previous session. The result for the 14-Nov-2021, 27-Apr-2023, 23-Mar-2025, 17-Mar-2027, 20-Nov-2029, 18-Mar-2036 and 26-Apr-2049 bonds traded are 1.49% (0.00%), 3.55% (-0.05%), 4.82% (-0.02%), 5.86% (0.28%), 7.09% (0.72%), 7.80% (0.00%) and 7.60% (0.00%) respectively.

Foreign Exchange Market:

At the FX Market (CBN Official Window), Naira remains unchanged, closing at ₦379.00/$ today compared to the ₦379.00/$ it traded in the previous trading session. On Investors and Exporters Window, Naira depreciated by150 kobo against the dollar as it closed at ₦393.50/$ today (vs. ₦392.00/$ it closed in the previous trading session).

Money Market:

In the Money Market today, the REPO rate decreased by an average of 111bps to ease liquidity. At the end of the trading session, the call, 1M, 2M, 3M rate closed at 0.26% (-0.04%), 0.53% (0.03%), 1.53% (-1.47%) and 3.03% (-2.97%) respectively. However, Open-Buy-Back (OBB) and Overnight (O/N) rate increased by an average of 0 bps, closing at 0.50% and 0.88% respectively.