Bellwethers put N329.7bn profit in investors’ hands in post-Sallah trading on Nigeria bourse

Bellwether stocks put N329.7 billion profits in the hands of investors on the Nigerian Exchange (NGX) as trading resumed Thursday following the two days holiday in observance of the muslim celebration of Sallah eid.

Buying interests in Dangote Cement (+7.8%), First Bank Holding (+3.5%), and Zenith Bank (+0.8%) brought about a positive performance of the benchmark index which rose 1.7 per cent to 38,585.52 points as the local equities market returned to winning ways after the Sallah holidays. Accordingly, the NGX market capitalisation rose above N20 trillion to reach N20.10 trillion while the market year to date loss improved to 4.2 percent.

The level of trading activities was mixed as the total volume traded fell by 58.3 percent to 192.9 million units while the value traded rose by 41.3 percent to N1.7 billion. The most traded stocks by volume were Sterling Bank (22.5m units), United Capital (16.9m units), and Fidelity Bank (14.1m units), while Guaranty Trust Company (N392.1m), Zenith Bank (N246.2m), and United Capital (N115.1m) led by value.

Across the sectoral front of the domestic equities market, the performance was bullish as four indices gained, the insurance index lost, while the ICT index closed flat. The industrial goods and oil & gas indices led the gainers, up 4.0 percent and 3.1 percent respectively, on the back of buying interest in Dangote Cement (+7.8%), Total Energies (+10.0%), and Oando Plc (+9.7%).

Similarly, the banking and consumer goods indices appreciated by 31 basis points and seven basis points respectively, due to price appreciation in First Bank Holding (+3.5%), Zenith Bank (+0.8%), Dangote Sugar (+0.3%), and Unilever Plc (+0.8%). On the flip side, the 1.9 percent decline in the insurance index was largely driven by sell-offs in Aiico Insurance (-8.7%) and AXA Mansard (-2.3%).

Investors sentiment lost its strength down to 1.8x from 2.4x recorded in the last trading session as 21 stocks gained while 12 stocks lost. The top gainers were Total Energies (+10.0%), Cutix Plc (+9.8%), and Oando Plc (+9.7%), while Aiico Plc (-8.7%), Sovereign Trust Insurance (-6.5%) and Veritas Kapital (-4.0%) led decliners.

At the NGX 30, the index increased by 1.72 percent to close at 1,645.83 points, against 1,617.98 points on the previous day. Market turnover closed with a traded volume of 105.63 million units. Total Energies and Dangote Cement were the key gainers, while Stanbic IBTC and Access Bank were the key losers.

At the Importers’ & Exporters’ foriegn exchange market, the Naira appreciated by 0.01 percent as the dollar was quoted at N411.63 against the last close of N411.67. Most participants maintained bids of between N400 and N412.20 to the dollar.

In other market activities, the Nigerian treasury bills secondary market closed on a mildly positive note with average yield across the curve decreasing by 1 basis point to close at 6.81 percent from 6.82 percent on the previous day. Average yield across the long-term maturities declined by seven basis points, while the average yield across the short-term maturities increased by 11 basis points. However, the average yield across the medium-term maturities closed flat at 5.40 percent. Yields on seven bills declined with the 14-Jul-22 maturity bill recording the highest yield decline of 74 basis points, while yields on 10 bills remained unchanged.

In the OMO bills market, the average yield across the curve increased by six basis points to close at 8.69 percent as against the last close of 8.63 percent. Selling pressure was seen across the medium-term maturities with the average yield expanding by 18 basis points. However, the average yield across short-term and long-term maturities declined by one basis point and three basis points, respectively. OMO 4-Jan-22 maturity bill witnessed maximum selling pressure with a yield increase of 194 basis points.

Meanwhile, the FGN bonds secondary market closed on a positive note Thursday as the average bond yield across the curve cleared lower by 15 basis points to close at 9.53 percent from 9.68 percent on the previous day. Average yields across the short, medium, and long tenors of the curve declined by 19 basis points, 1 basis point, and 4 basis points, respectively.

The FGNSB 10-JUL-2022 bond was the best performer with a decline in yield of 74 basis points, while the FGNSB 15-AUG-2022 bond was the worst performer with an increase in yield of 20 basis points.