*Naira firms at NAFEM window, gains 0.37%
By Bamidele Famoofo
WorldStage– The Nigerian equities market edged higher on Wednesday, with the NGX All-Share Index inching up 0.04 percent to settle at
252,508.19 points, lifting the year-to-date return to 62.27 percent and adding a modest ₦61.84 billion to market capitalization, which closed at ₦161.84 trillion.
Market breadth was positive at 1.3x, as 38 gainers led by CWG, DAARCOMM, FIDSON,
LIVESTOCK, and BERGER outpaced 29 losers, with NCR, ZICHIS, FIRSTHOLDCO, NEIMETH, and ETERNA recording the most
notable losses. Sectoral performance was mixed, as Industrial (+0.93%), Insurance (+0.68%), and Consumer Goods
(+0.23%) all closed in positive territory, while Banking (-2.53%) and Oil & Gas (-0.03%) dragged on the index and the
Commodity sector ended flat.
Trading activity was divergent, as turnover and deal count climbed 34.35 percent and 1.83 percent to ₦117.84 billion and 82,367 transactions respectively, while volume declined 6.69 percent to 1.89 billion shares.
Heading into Thursday’s session, the market is expected to face mild headwinds following today’s marginal gain, as tepid investor participation and an unconvincing breadth of activity suggest a possible pullback.
At the money market, Nigerian Interbank Offered Rates closed on a mixed note on Wednesday, with the overnight rate easing 10bps to 22.25 percent, reflecting improved system liquidity as the Standing Deposit Facility advanced to ₦5.1 trillion. The 1-month, 3-month, and 6-month tenors moved in the opposite direction, however, climbing 8bps, 55bps, and 48bps respectively. Funding costs were equally divergent, as the Overnight rate fell 5bps to 22.16 percent while the Open Repo rate remained unchanged at 22.00 percent.
In the Treasury Bills secondary market, yields closed on a varied note, with the 1-month, 3-month, and 6-month bills rising
73bps, 49bps, and 34bps respectively, while the 12-month tenor bucked the trend with a 7bps decline. Overall, the average
NT-Bills yield edged up 3bps to close at 17.47 percent, reflecting softening investor demand and a broadly negative tone across the fixed-income space.
The FGN bonds market closed flat on Wednesday at the bonds market, with average yields holding steady at 16.08 percent, reflecting measured domestic investor confidence and cautious appetite for naira-denominated sovereign debt.
The Eurobond market painted a contrasting picture, however, as average yields eased 1bp to 6.80 percent, pointing to strengthening global investor interest and a broadly favorable outlook toward Nigeria’s dollar-denominated sovereign obligations.
Meanwhile, the naira strengthened across both market segments on Wednesday, appreciating 0.37 percent to ₦1,370.56/$ at the NAFEM window and gaining a further 0.07 percent to ₦1,371/$ in the parallel market.
