Nigeria bourse yields N43.4bn to investors on equities’ bargain hunting day

The Nigerian equities market appreciated further on Wednesday, a day investors’ appetite for bargain hunting reigned and yielded N43.4 billion as gains from buying activities in Access Bank (+2.7%), Dangote Sugar (+2.0%), and Wapco Plc (+1.6%) drove the All-Share Index up by 0.22 percent to 38,501.31 points.

As a result, the market year to date loss improved to -4.4 percent while market capitalization of listed equities rose to N20.07 trillion from N20.02 trillion.

Trading activity improved as volume and value traded rose 2.5 percent and 6.0 percent, respectively to 296.1 million units and N2.6 billion. The most traded stocks by volume were First Bank Holding (34.8m units), Access Bank (28.7m units), and Zenith Bank (27.7m units) while Zenith Bank (N689.2m), Guaranty Trust Company (N357.1m), and Access Bank (N271.7m) led by value.

Across sectors, performance was bullish as 5 of 6 indices closed in the green while the ICT index closed flat. The Insurance and Banking indices led the gainers, up 0.6 percent and 0.5 percent, respectively, following buying interest in Wapic Plc (+5.4%), Custodian Investment (+4.8%), Access Bank (+2.7%), and Zenith Bank (+0.8%).

Furthermore, gains in Oando Plc (+2.6%) drove the Oil & Gas index higher, up 0.4 percent, while in a similar fashion, the Industrial and Consumer Goods indices rose by 0.1 percent apiece due to price appreciation in Wapco (+1.6%), Dangote Sugar (+2.0%) and Flour Mill (+0.2%).

Investor sentiment weakened to 1.7x (from 2.8x) as 22 stocks gained while 13 stocks lost.  Cutix Plc (+10.0%), John holt Plc (+9.8%), and UAC-Properties (+9.7%) led gainers, while BOC Gas (-9.9%), Berger Plc (-9.6%) and Courtville (-4.5%) led decliners.

The NGX 30 Index rose by 0.27 percent to close at 1,621.48 points as against 1,617.18 points on the previous day. Market turnover closed with a traded volume of 185.64 million units. Custodian investment and Access Bank were the key gainers, while UBA and Ecobank were the key losers.

In the currency market, the naira remained unchanged at N411.45 per dollar at the Investors and Exporters window while it stayed flat at the parallel market at N502 per dollar. Most participants maintained bids of between N387.67 and N420.86 per dollar.

The Nigerian Treasury bills secondary market closed on a mildly negative note with average yield across the curve increasing by one basis point to close at 6.75 percent from 6.74 percent on the previous day. Average yield across the long-term maturities increased by one basis point. However, the average yields across short-term and medium-term maturities closed flat at 4.34 percent and 5.46 percent, respectively. Selling pressure was witnessed in the NTB 12-May-22 maturity bill with a yield increase of 23 basis points, while yields on 20 bills remained unchanged.

In the OMO bills market, the average yield across the curve increased by two basis points to close at 9.93 percent as against the last close of 9.91 percent. Mild selling pressure was seen across long-term maturities with the average yields rising by six basis points. However, the average yields across short-term and medium-term maturities closed flat at 9.28 percent and 9.91 percent, respectively. Yields on six bills advanced, with the 22-Feb-22 maturity bill recording the highest yield increase of 22 basis points, while yields on 17 bills remained unchanged.

The FGN bonds secondary market closed flat on Wednesday as the average bond yield across the curve remained unchanged at 9.53 percent. Average yield across the short tenor of the curve declined by one basis point, while the average yield across the medium tenor of the curve expanded by two basis points. However, the average yield across the long tenor of the curve remained unchanged. The FGNSB 19-JUN-2022 Sukuk bond was the best performer with a decline in yield of six basis points, while the 22-JAN-2026 maturity bond was the worst performer with an increase in yield of seven basis points.