The Nigerian equities market kicked-off the week on a bearish note as the benchmark index declined by 2.22 percent, largest decline since January 9, 2019, to 30,194.71 points following profit taking in MTNN and DANGCEM shares.
The month-to-date return moderated to 3.55 per cent as the year-to-date loss increased to 3.93 per cent respectively. On sectoral performance, losses in the Industrial Goods (-2.32 per cent) and Oil & Gas (-0.39 percent) indices offset gains from Banking (+1.02 per cent), Consumer Goods (+0.73 per cent) and Insurance (+0.04 per cent) indices. Notable stocks include DANGCEM (-4.00 per cent), OANDO (-2.27 per cent), ETI (+9.45 per cent), UNILEVER (+8.71 per cent), and SOVRENIN (+8.70 per cent), respectively. Market breadth was negative, with 19 losers and 14 gainers, led by RTBRISCOE (-9.38 per cent) and NEIMETH (+9.80 per cent) shares, respectively.
Total volume of trades declined by 49.60 per cent to 148.21 million units, valued at NGN2.22 billion, and exchanged in 3,654 deals. “In the absence of a positive catalyst, we guide investors to trade cautiously in the short term. However, stable macroeconomic fundamentals and compelling valuation remain supportive of recovery in the mid-to-long term,” Cordros Securities analysts said. The USD/NGN depreciated by 0.06 per cent to NGN360.59 in the investor and exporters (I&E) FX window, but closed flat at NGN361.00 at the parallel market. Total turnover in the IEW decreased by 36.63 per cent to USD 217.08 million in last Friday’s session, with trades consummated within the NGN356.00-NGN362.50/ USD band.
The overnight lending rate expanded by 329 bps to 15.29 per cent, as banks funded for the weekly FX wholesale auction. Activities in the treasury bills market were mixed, with a bearish tilt, as average yield expanded by 1 bp to 12.16 per cent. Sell pressure was concentrated at the mid (+4 bps) segment, with yield on the 150DTM (+50 bps) bill expanding. Conversely, demand for the 84DTM (-12 bps) bill led to yield contraction at the short (-2 bps) end of the curve. Yield at the long segment was flat. Trading in the bond market was similarly mixed, with a bearish bias, as average yield expanded by 1 bp to close at 13.82 per cent. Sell pressure was spread across the short (+3 bps) and mid (-1bps) segments, with respective yields on FEB-2020 (+20 bps) and JAN-2026 (+2 bps) bonds expanding. Conversely, demand for JUL-2034 (-4 bps) bond, led to yield contraction at the long (-1 bp) end of the curve.