The bulls reign in the local bourse from price appreciation in GTBank, Wapco, Union Bank
Charles Abuede
The local bourse extended gains for the third consecutive trading session as a result of price appreciation in GTBank (+4.2%), Wapco Plc (+6.8%), and Union Bank (+5.3%). Accordingly, the All-Share index rose 0.29 per cent to close at 39,128.34 points, with the year to date loss improving to -2.8 per cent while market capitalisation increased by N59 billion to N20.47 trillion from N20.41 trillion.
Conversely, the level of trading activity declined as volume and value traded fell 29.4 per cent and 38.5 per cent respectively to 239.2 million units and N1.7 billion. The most traded stocks by volume were Access Bank (28.2m units), Fidelity Bank (17.2m units), and Mutual Benefit Assurance (16.8m units) while GTBank (N423.1bn), Zenith Bank (N276.7m), and Access Bank (N213.2m) led by value.
Across sectors, the performance was mixed as 3 of the 6 indicators closed in the green. The Banking index led gainers, up 2.3 per cent due to price appreciation in GTBank (+4.2%), Union Bank (+5.3%), and UBA (+2.1%). Similarly, the industrial goods and oil & gas indices rose 0.4 per cent and 0.3 per cent respectively due to buying interest in Wapco Plc (+6.8%), Conoil Plc (+10.0%), and Eterna Plc (+9.5%). Conversely, the insurance and consumer goods indices declined 1.3 per cent and 0.4 per cent respectively as investors exited position in NEM Insurance (-7.0%), Linkage Assurance (-4.8%), Guinness Nigeria Plc (-9.9%) and International Breweries (-0.9%). Finally, the ICT index closed flat.
However, the investor sentiment, as measured by market breadth weakened to 1.0x from the 2.0x recorded in the previous session as 22 stocks advanced against 21 decliners. Conoil Plc (+10.0%), Studio Press (+9.9%) and Eterna Plc (+9.5%) were the top gainers while Guinness Nigeria Plc (-9.9%), Portland Paint (-9.8%) and Academy Press (-9.8%) were the top decliners.
At the close of midweek trade, the NSE 30 Index increased by 0.46 per cent to close at 1,558.49 points as against 1,551.33 points as on the previous day. Market turnover closed with a traded volume of 109.68 million units. Lafarge Africa and Sterling Bank were the key gainers, while Guinness Nigeria Plc and Ecobank were the key losers.
FX Market
At the I&E FX market, Naira appreciated by 0.16 per cent as the dollar was quoted at N410 to a dollar as against the last close of N410.67 per dollar while it traded flat at N379 the official CBN window for the greenback as most participants maintained bids between N381 and N437.41 per dollar.
T-Bills
Further afield, the NT-Bills secondary market closed on a negative note with average yield across the curve increasing by 15 basis points to close at 4.65 per cent from 4.50 per cent on the previous day. The average yields across short-term and medium-term maturities expanded by 44 basis points and 14 basis points, respectively. However, the average yield across long-term maturities closed flat at 6.33 per cent. Yields on 8 bills advanced with the 10-Jun-21 maturity bill recording the highest yield increase of 55 basis points, while yields on 13 bills remained unchanged.
In the OMO bills market, the average yield across the curve increased by 28 basis points to close at 7.46 per cent as against the last close of 7.18 per cent. Selling pressure was seen across short-term, medium-term, and long-term maturities with average yields rising by 55 basis points, 18 basis points, and 25 basis points, respectively. Yields on 16 bills advanced with the 28-Dec-21 maturity bill recording the highest yield increase of 134 basis points, while yields on 11 bills remained unchanged.
Bond Market
As the FGN bonds secondary market closed on a mildly negative note today, the average bond yield across the curve cleared higher by 7 basis points to close at 8.21 per cent from 8.14 per cent on the previous day. Average yields across short tenor, medium tenor, and long tenor of the curve widened by 7 basis points, 1 basis point, and 11 basis points, respectively. The 26-APR-2049 maturity bond was the best performer with a decrease in the yield of 33 basis points, while the 18-JUL-2034 maturity bond was the worst performer with an increase in the yield of 50 basis points.
Meanwhile, on Wednesday, the DMO conducted its scheduled FGN bonds auction to reopen the 10-year, 15-year, and 25-year instrument. A total of N150 billion was offered across 10-year (N50 billion), 15-year (N50 billion), and 25-year (N50 billion) tenors. The bond settlement will take place on April 23.
