The
domestic equities market was significantly bullish as the ASI rose
for the fifth consecutive day, gaining 1.98% — the largest daily gain since
Dec. 24, 2018. — to close at 31,433.49. points, driven by interest across
various large-cap stocks.
Consequently, the Month-to-Date gain grew to 2.87% and the Year-to-Date return
moved into positive territory, for the first time this year, at 0.01%.
All sector indices closed positive with the Banking (+5.78%) index recording
the largest gain, followed by the Industrial Goods (+1.47%), Oil and Gas
(+0.84%), Consumer Goods (+0.64%) and Insurance (+0.50%) indices. Notable
stocks across the indices include GUARANTY (+9.51%), DANGCEM (+1.60%), FO
(+10.00%), DANGSUGAR (+6.25%), and MANSARD (+3.57%) respectively.
Market breadth was positive with 25 gainers and 12 losers, led by FO (+10.00%)
and TRANSEXPR (-8.70%). The total volume and value traded expanded by 21.84%
and 21.80% to NGN436.7 million and NGN5.88 billion, respectively, and exchanged
in 4,047 deals.
Our outlook for equities in the short-to-medium term remains conservative ahead
of the upcoming general elections. However, we expect the stable macroeconomic
fundamentals to drive recovery in the long-term.
CURRENCY
The USD/NGN strengthened by 0.02% to NGN361.64 in the I&E FX window and
remained flat at NGN361.00 in the parallel market. Total turnover in the
IEW declined by 21% to USD348.48 million, with trades consummated within the
NGN358.00-364.25/USD band.
FIXED INCOME AND MONEY MARKET
The overnight lending rate declined by 342 bps to 18.42%, following inflows
from matured OMO bills (NGN315.32 billion). The CBN mopped up NGN320.97 billion
via OMO auction, selling NGN39.90 billion of the 119DTM, NGN10.59 billion of
the 182DTM and NGN270.48 billion of the 364DTM, at respective stop rates of
11.90%, 13.50% and 15.00%.
Trading in the treasury bills market was bearish, as average yield expanded by
12 bps to 14.57%. Investors sold off at the short (+36 bps) and long (+5
bps) ends of the curve, with the 42DTM (+159 bps) and 210DTM (+61 bps) bills
recording significant expansions, respectively. Yield at the mid segment was
flat.
Bullish sentiments persisted in the bond market, as average yield compressed 11
bps to 14.78%. Buy sentiment was spread across the short (-5 bps), mid (-9 bps)
and long (-25 bps) segments amidst demand for the JUL-2021 (-22 bps), JUL-2030
(-15 bps) and MAR-2036 (-28 bps) bonds, respectively.
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