By Bamidele Famoofo
WorldStage– Over N2 trillion was knocked off the market capitalisation of the Nigerian equities market on Thursday as investors continue their profit-taking spree, bringing down market capitalisation to N152.27 trillion.
The NGX All-Share Index declined 1.41 percent to settle at 237,404.92 points, pulling the year-to-date return down to +52.56 percent.
Market breadth was broadly negative at 0.325x, as 40 decliners led by AFRIPRUD, TRIPPLEG, CADBURY, JOHNHOLT, and MCNICHOLS comfortably outpaced 13 advancers, with LEGENDINT, NPFMCRFBK, TRANSCORP, NEIMETH, and DAARCOMM recording the most notable gains. Sectoral performance was broadly negative across the board, as Industrial (-3.42%), Insurance (-2.83%), Banking (-1.48%), Consumer Goods (-0.59%), and Oil & Gas (-0.14%) all finished in negative territory, while the Commodity sector ended flat.
Trading activity was mixed, as volume and turnover rose 4.33 percent and 192.28 percent to 691.64 million shares and ₦116.85 billion respectively, while deal count edged down 2.19 percent to 50,025 transactions. Heading into the next session, the market is expected to sustain its bearish trend, weighed down by continued profit-taking activity and lingering uncertainties across the equities market.
At the money market, the Nigerian Interbank Offered Rates declined across all tenors on Thursday, with the overnight rate slipping 5bps to 22.21 percent, reflecting improved system liquidity. The 1-month, 3-month, and 6-month tenors followed suit, dropping 7bps, 17bps, and 28bps respectively. Funding costs were divergent, however, as the Overnight rate eased 2bps to 22.19 percent while the Open Repo rate remained unchanged at 22.00 percent.
In the Treasury Bills secondary market, yields moved in the opposite direction, rising across all maturities as the 1-month, 3-month, 6-month, and 12-month bills advanced 3bps, 3bps, 40bps, and 74bps respectively. Overall, the average NT-Bills yield climbed 2bps to close at 17.91 percent, reflecting reduced investor demand and a broadly negative tone across the fixed- income space.
The FGN Bonds market extended its bearish run on Thursday, with average yields surging 2bps to 16.91 percent, pointing to persistently weak domestic investor confidence and a continued decline in appetite for naira-denominated sovereign debt.
The Eurobond market painted a similar picture, as average yields advanced 2bps to 6.93 percent, signaling subdued global investor interest and a broadly unfavorable outlook toward Nigeria’s dollar-denominated sovereign obligations.
The naira posted a mixed performance on Thursday, depreciating 0.24 percent to ₦1,363.30/$ at the NAFEM window while holding steady at ₦1,373/$ in the parallel market, reflecting mild selling pressure in the official segment.
