Nigeria equities reverse loss with trading upbeat in DangSugar, FCMB, Union Bank

An upbeat in trading activities in the shares of Dangote Sugar (+4.2%), Union Bank (+3.7%), and FCMB (+8.1%) on Tuesday helped to claw back losses in the domestic equities market resulting in a gain of about N31 billion as market capitalisation rose to N19.623 trillion from N19.592 trillion recorded in the previous day’s close.

The positive market performance also saw the All-Share Index rise by 0.15 percent to 37,640.75 points. Consequently, market year to date loss improved to -6.5 percent.

However, trading activity was mixed as the volume traded rose by 32.1 per cent to 216 million units while the total value traded fell by 21.1 per cent to N2.7 billion. The most traded stocks by volume were FCMB (40.7m units), Custodian Investment (15.8m units), and Guaranty Trust Company (13.4m units) while Guaranty Trust Company (N401.1bn), Seplat Petroleum  (N309.9m), and Nigerian Breweries (N330.4m) led by value.

Across the various sectors, performance was mixed as 3 indices gained, 2 indices remained unchanged while an index lost. The insurance index led the gainers, up by 2.2 percent following price appreciation in Linkage Assurance (+10.0%), Mutual Benefits Assurance (+7.5%), and Aiico Insurance (+1.0%). Similarly, the banking and consumer goods indices rose by 25 basis points and 29 basis points respectively, largely attributed to buying interests in  Union Bank  (+3.7%), First Bank Holding (+1.4%), Cadbury Plc (+9.6%), and Nigerian Breweries (+0.3%). On the flip side, the oil & gas index shed 0.9 per cent due to price depreciation in Seplat Petroleum (-1.4%) and  Eterna Plc (-1.3%). The industrial goods and ICT indices were unchanged on Tuesday.

Investors sentiment strengthened to 2.2x from 0.7x recorded in the last trading session as 28 stocks advanced while 13 stocks declined. Ikeja Hotel (+10.0%), Linkage Assurance (+10.0%), and Cadbury Plc (+9.6%) led the gainers while Jaiz Bank (-5.2%), Veritas Kapital (-4.0%), and Unity Bank (-3.6%) led the decliners.

At the close of the day’s trading, the NGX 30 Index rose by 0.23 percent to close at 1,581.41 points as against 1,577.75 points on the previous day. Market turnover closed with a traded volume of 132.11 million units. FCMB and Okomu Oil were the key gainers, while Flour Mills and Unilever Plc were the key losers.

In the currency market, the local currency, the naira, lost strength against the dollar to trade at N502/$1 in the parallel market while it appreciated by 0.11 percent at the I&E FX market with the dollar quoted at N410.83 as against the last close of N411.28. Most market participants maintained bids at between N400 and N420.90 per dollar.

The Nigerian T-Bills secondary market closed on a mildly negative note with average yield across the curve increasing by one basis point to close at 6.58 percent from 6.57 percent on the previous day. Average yield across the long-term maturities increased by two basis points. However, the average yields across the short-term and medium-term maturities closed flat at 4.35 percent and 5.47 percent, respectively. Selling pressure was seen in the NTB 9-Jun-22 maturity bill with a yield increase of 27 basis points.

In the OMO bills market, the average yield across the curve increased by two basis points to close at 9.88 percent as against the last close of 9.86 percent. Selling pressure was seen across long-term maturities with the average yield rising by five basis points. However, the average yields across short-term and medium-term maturities closed flat at 9.31 percent and 9.72 percent, respectively. Yields on three bills advanced with the 15-Mar-22 maturity bill registering the highest yield increase of 30 basis points, while yields on 20 bills remained unchanged.

FGN bonds secondary market closed on a mildly positive note Tuesday as the average bond yield across the curve cleared lower by 3bps to close at 9.78 percent from 9.81 percent on the previous day. Average yields across the short tenor, medium tenor, and long tenor of the curve declined by two basis points, four basis points, and 11 basis points, respectively. The 14-MAR-2024 maturity bond was the best performer with a decline in yield of 61 basis points, while the FGNSB 10-JUL-2022 savings bond was the worst performer with an increase in yield of 24 basis points.