Nigerian equities shed N27bn on profit taking in banking stocks  

On the penultimate final trading day of the week, market analysts watching activities on the Nigerian Exchange (NGX) are predicting that barring any fresh catalysts that can spurt more positive trading, profit taking sentiments are expected to linger on the local bourse. The prediction follows Thursday’s trading outcome which saw traders lose N27 billion by the time the market closed.

The day’s loss cut back gains recorded in the prior three sessions of the week as profit-taking in Access Bank (-3.2%), UBA (-2.6%), and Stanbic IBTC (-0.7%) dragged the All-Share Index down by 0.08 percent to 38,469.87 points, on the back of which the market year to date loss worsened to -4.5 percent, while market capitalisation fell to N20.04 trillion from N20.07 trillion.

The trading activity was mixed as the volume traded fell by 19.5 percent to 238.2 million units while the value traded rose by 0.8 percent to N2.6 billion. The most traded stocks by volume were Transnational Corporation (34.4m units), Courtville (26.4m units), and Zenith Bank (23.7m units), while Zenith Bank (N590.3m), Guaranty Trust Company (N363.0m), and Seplat Petroleum (N315.4m) led by value.

Market performance was mixed across the sectorial fronts, as three indices gained, two indices lost, while the ICT index stayed flat. The oil & gas index led the gainers, up 1.2 percent on the back of buying interest in Seplat Petroleum (+2.7%). In the same vein, the insurance and industrial goods indices rose 14 basis points and four basis points respectively, driven by price appreciation in NEM Insurance (+10.0%) and Wapco Plc (+0.7%). Conversely, the banking and consumer goods indices declined by 1.0 percent and 14 basis points respectively due to sell-pressure on Access Bank (-3.2%), UBA (-2.6%), Nascon Plc (-4.1%), and Dangote Sugar (-0.8%).

Investors sentiment weakened to 0.8x (from 1.7x) as 12 stocks gained while 16 stocks lost.  NEM Insurance (+10.0%), Courtville (+9.5%), and Nahco (+5.7%) led the gainers, while Prestige Assurance (-10.0%), Eko Pharmacy (-9.7%) and University Press Limited (-7.9%) led the decliners.

The NGX 30 index fell marginally by 0.03 percent to close at 1,621.07 points as against 1,621.48 points on the previous day. Market turnover closed with a traded volume of 107.59 million units. Seplat and Lafarge Africa were the key gainers, while Nascon and Access were the key losers.

At the Importers’ and Exporters’ (I&E) window of the foreign exchange market, the Naira appreciated by 0.05 percent as the dollar was quoted at N411.25 as against the last close of N411.45. Most participants maintained bids of between N396.00 and N420.86 to the dollar.

The NT-Bills secondary market closed on a mildly negative note with average yield across the curve increasing by two basis points to close at 6.77 percent from 6.75 percent the previous day. Average yield across the long-term maturities increased by four  basis points. However, the average yields across short-term and medium-term maturities closed flat at 4.45 percent and 5.58 percent, respectively. Selling pressure was witnessed in the NTB 28-Apr-22 maturity bill with a yield increase of 53  basis points, while yields on 21 bills remained unchanged.

In the OMO bills market, the average yield across the curve decreased by five  basis points to close at 9.88 percent as against the last close of 9.93 percent. Buying interest was seen across long-term maturities with the average yield falling by 13  basis points, while the average yield across the short-term maturities increased by two  basis points. However, the average yield across the medium-term maturities closed flat at 9.91 percent. Yields on five bills compressed with the 25-Jan-22 maturity bill recording the highest yield decrease of 53  basis points, while yields on 17 bills remained unchanged.

The secondary market for FGN bonds closed on a mildly negative note as the average bond yield across the curve cleared higher by one basis point to close at 9.54 percent from 9.53 percent on the previous day. Average yield across the medium tenor of the curve increased by 10  basis points, while the average yields across short tenor and long tenor of the curve declined by one basis point and two  basis points, respectively. The 18-JUL-2034 maturity bond was the best performer with a decline in yield of 10  basis points, while the 26-APR-2029 maturity bond was the worst performer with an increase in yield of 18  basis points.