NSE ASI INCHES DOWN BY 0.40% TO OPEN THE WEEK NEGATIVE

Equities market closed the day’s trading session in the red zone as the NSE All-Share Index (NSE ASI) and Market Capitalisation depreciated by 0.40% to close at 38,712.55 and ₦20.26 trillion respectively. The Year-to-Date (YtD) and the Quarter-to-Date (QtD) returns stand at -3.87% and -0.85%, while the Month-to-Date (MTD) and Week-to-Date returns stand at -0.85%and -0.40% respectively.

NSE Sector Indices:

Of all the Industries on the NSE within our coverage, 2 sectors advanced in points, while 4 sectors declined. The NSE sector indices that advanced in points were NSE BANKING (+0.16%) and NSE PREMIUM (+0.04%), while the sectors that declined in points were NSE OIL &GAS (-0.12%), NSE 30 (-0.57%), NSE INSURANCE (-0.85%) and NSE CONSUMER GOODS (-1.03%).

The market breadth (gainers/losers) of 0.75x 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, 15 stocks advanced as 20 stocks declined; JAPAULGOLD (+9.52%), UAC-PROP (+9.33%) and ROYALEX (+8.33%) led the gainers’ chart while STANBIC (-9.94%), GUINNESS (-9.93%) and CUSTODIAN (-8.40%) led the losers’ chart for the day.

The day’s trading activities by volume was led by FIDELITYBK (30.88million), CHAMS (29.53million) and ACCESS (23.37million) while the activity by value was led by ACCESS (₦0.19billion), GUARANTY (₦0.12billion) and TOTAL (₦0.10billion).

Outlook:

NSEASI inches down by 0.40% to open the week negative. With new opportunities in the fixed-income space, especially in sovereign issues with almost zero default risk, there has been portfolio adjustments in recent weeks by equities owners, despite the seasons of dividend payments by listed companies. Notwithstanding, this is very likely to create entry opportunities for investors.

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 the year.

FIXED INCOME REPORT AS AT APRIL 9, 2021

Treasury Bills Market:

In the treasury bills markets, the average yield decreased by 41bps as it closed at 4.06% today (vs. 4.47% average market yield of last trading session). At the end of the trading session today, the 01-Jul-21, 30-Sep-21 and 24-Feb-22 bills closed at 2.43% (0.00%), 3.51% (-0.83%), and 6.24% (-0.39%) respectively.

FGN Bond Market:

In the bond market, the average market yield decreased by an average of 37bps as it closed at 8.90% as against 8.94% of the previous session. The result for the 27-Apr-2023, 14-Mar-2024, 22-Jan-2026, 23-Feb-2028, 23-Jul-2030, 24-Jul-2045 and 27-Mar-1950 bonds traded are 5.68% (-0.60%), 7.22% (-0.33%), 10.49% (0.45%), 10.95% (0.00%), 11.51% (0.00%), 13.11% (0.11%) and 11.82% (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 appreciated by 65 kobo against the dollar as it closed at ₦409.00/$ today (vs. ₦409.65/$ it closed in the previous trading session).

Money Market:

In the Money Market today, the REPO rate decreased by an average of 238bps to ease liquidity. At the end of the trading session, the call, 1M, 2M, 3M rate closed at 12.00% (-2.00%), 13.00% (-2.50%), 13.50% (-2.50%) and 15.00% (-2.50%) respectively. However, Open-Buy-Back (OBB) and Overnight (O/N) rate decreased by an average of 238 bps, closing at 12.25% and 12.50% respectively.