The Nigerian Bourse Ends The Year On Positively, As It Records YoY Gain Of 50.03%

The Nigerian Bourse — Equities market closed the day’s trading session in the green zone as the NSE All-Share Index and Market Capitalisation appreciated by 1.92% to close at 40,270.72 and ₦21.06 trillion respectively.

The Year-to-Date (YtD) and the Quarter-to-Date (QtD) returns stand at 50.03% and 50.09%, while the Month-to-Date (MTD) and Week-to-Date returns stand at 14.92%and 3.79% respectively.

NSE Sector Indices:

Of all the Industries on the NSE within our coverage, 3 sectors advanced in points, while 3 sectors declined. The NSE sector indices that advanced in points were NSE 30 (+2.27%), NSE PREMIUM (+1.96%), NSE OIL &GAS (+0.65%), while the sectors that declined in points were NSE INSURANCE (-0.41%), NSE CONSUMER GOODS (-0.80%) and NSE BANKING (-0.89%).

The market breadth (gainers/losers) of 0.74x for the day indicates that the number of sellers outpaced the number of buyers in the market today. At the end of the day’s trading, 17 stocks advanced as 24 stocks declined; BOCGAS (+10.00%), NNFM (+9.95%) and CILEASING (+9.94%) led the gainers’ chart while FTNCOCOA (-9.59%), ETERNA (-9.09%) and AIICO (-8.87%) led the losers’ chart for the day.

The day’s trading activities by volume was led by AIICO (206.00million), ACCESS (99.65million) and FBNH (48.31million) while the activity by value was led by MTNN (₦4.07billion), DANGCEM (₦2.10billion) and ZENITH BANK (₦1.09billion).

Outlook:

The Nigerian Bourse ended the year on a positive note as Nit records a Year-to-date gain of 50.03%. 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 30, 2020

Treasury Bills Market:

In the treasury bills markets, the average yield increased by 8bps as it closed at 0.47% 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%), 0.41% (0.22%), and 0.65% (0.02%) respectively.

FGN Bond Market:

In the bond market, the average market yield increased by an average of 287bps as it closed at 5.19% as against 4.83% 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 1.39% (-0.10%), 3.55% (0.00%), 5.45% (0.63%), 7.14% (1.28%), 7.09% (0.00%), 7.80% (0.00%) and 8.66% (1.06%) respectively.

Foreign Exchange Market:

At the FX Market (CBN Official Window), Naira remains, closing at ₦379.00/$ today compared to the ₦379.00/$ it traded in the previous trading session. On Investors and Exporters Window, Naira depreciated by 50 kobo against the dollar as it closed at ₦394.00/$ today (vs. ₦393.50/$ it closed in the previous trading session).

Money Market:

In the Money Market today, the REPO rate increased by an average of 129bps to tighten liquidity. At the end of the trading session, the call, 1M, 2M, 3M rate closed at 0.50% (0.24%), 1.00% (0.47%), 3.00% (1.47%) and 6.00% (2.97%) respectively. However, Open-Buy-Back (OBB) and Overnight (O/N) rate remain unchanged, closing at 0.33% and 0.58% respectively.