Investors earn N88bn as buying interest in MTN, Zenith, GTBank buoyed positive performance in the equities market

Charles Abuede

The Nigerian equities market extends its positive tempo going into the third trading session resulting from buying interest in MTN Nigeria (+1.0%), Zenith Bank (+2.8%), and GTBank (+1.7%) which buoyed market performance on Tuesday as the NGX All-Share index inched up 0.43 per cent in the session to peg the bourse at 39,015.58 basis points. This outing brought the market year-to-date performance to stand at – 3.12 per cent as investors earned N87.7 billion while the market capitalisation increased to N20.41 trillion from N20.33 trillion.

On the flip side on Tuesday, the level of trading activity declined as total volume and value traded fell 33.4 per cent and 91.6 per cent respectively to 339.0 million units and N2.7 billion. The most traded stocks by volume were Fidelity Bank (125.3m units), Zenith Bank (26.2m units), and UAC Nigeria (25.8m units) while GTBank (N683.1bn), Zenith Bank (N575.0m), and UAC Nigeria (N280.3m) led by value.

However, the market performance across the sectoral fronts was bullish as 4 of the 6 indicators closed in the green. The Banking index led gainers’ chart, advancing 1.8 per cent due to price appreciation in Zenith Bank (+2.8%) and GTBank (+1.7%) while the Insurance index rose 1.1 per cent on account of buying interest in NEM Insurance (+7.5%) and Custodian Plc (+4.4%). Similarly, the ICT and consumer goods indices inched higher by 0.5 per cent and 0.4 per cent respectively as investors took position in MTN Nigeria (+1.0%), International Breweries (+1.8%), and PZ Cussons (+10.0%). Conversely, the oil & gas index was the lone laggard, down 3 basis points following price depreciation in Oando Plc (-1.6%). Finally, the industrial goods index closed flat.

Investor sentiment, as measured by market breadth strengthened to 2.0x from the 1.5x recorded in the previous session as 24 stocks advanced against 12 decliners. PZ Cussons (+10.0%), Honeywell Flour (+10.0%) and Sovereign Trust Insurance (+8.0%) were the top gainers while Royal Exchange (-10.0%), Portland Paint (-9.9%) and FTN Cocoa Processors (-8.9%) were the top decliners.

NSE 30

Meanwhile, the NSE 30 Index increased by 0.52 per cent to close at 1,551.33 points as against 1,543.34 points as on the previous day. Market turnover closed with a traded volume of 239.31 million units. Sterling Bank and Custodian were the key gainers, while FCMB was the only loser.

FX market

Elsewhere in the foreign exchange market, the Naira depreciated by 0.08 per cent as the dollar was quoted at N410.67 as against the last close of N410.33 at the investors and Exporters windows while it remained flat at N379 to a dollar in the CBN official window. Most participants maintained bids between N399 and N437.41 per dollar.

Treasury Bills

Further afield, the NT-Bills secondary market closed on a flat note, with the average yield across the curve remaining unchanged at 4.50 per cent. Average yields across short-term, medium-term, and long-term maturities closed at 2.41 per cent, 3.21 per cent, and 6.33 per cent, respectively.

While in the OMO bills market, the average yield across the curve remained unchanged at 7.18 per cent. Average yields across short-term, medium-term, and long-term maturities closed at 3.76 per cent, 6.52 per cent, and 8.41 per cent, respectively.

Bond market

The FGN bonds secondary market closed on a mildly negative note on Tuesday as the average bond yield across the curve cleared higher by 1 basis point to close at 8.14 per cent from 8.13 per cent on the previous day. Average yields across medium tenor and long tenor of the curve widened by 4 basis points and 1 basis point, respectively. However, the average yield across the short tenor of the curve remained unchanged. The 23-FEB-2028 maturity bond was the worst performer with an increase in yield of 27 basis points.

However, on Wednesday, the debt management office (DMO) is scheduled to offer FGN bonds worth N150 billion at the primary market auction through re-opening of 10-year (N50 billion), 15-year (N50 billion), and 25-year (N50 billion) tenors. The bond settlement will take place on April 23.