Nigeria equities market yields N4.4bn profits to investors

 By Charles Abuede

The benchmark index of Nigeria’s equities market rose marginally by 0.03 per cent to settle at 30,741.88 points due to price appreciation in FCMB (+5.2%), Guaranty Trust Bank (+0.3%) and Dangote Sugar (+0.7%).

Similarly, investors gained N4.4 billion as market capitalisation advanced to N16.068 trillion from N16.064 trillion and YTD return settled at 14.5 per cent.

However, activity level declined as volume and value traded fell 14.8 per cent and 20.5 per cent to 286.4 million units and N3.1 billion respectively. The most traded stocks by volume were Access Bank (145.0m units), Zenith (21.9 million units) and UBA (17.0 million units) while Access (N1.2 billion), Stanbic (N520.4 million) and Zenith (N477.8 million) led by value.

Bullish sector performance 

Across sectors, the performance was bullish as 3 of the 6 indices closed northward save the Banking, AFR-ICT and Oil & Gas indices which closed flat. The Insurance index led the gainers, up 1.0 per cent due to buying interest in AIICO (+4.8%), CHI PLC (+8.8%) and Prestige Assurance (+7.4%). Similarly, the Consumer and Industrial Goods indices rose 5 basis points and 3 basis points respectively following gains in Dangote Sugar (+0.7%), Wapco Plc (0.3%) and CAP (+3.1%).

Investor sentiment weakens

Investor sentiment as measured by market breadth (advance/decline ratio) weakened to 1.1x from the 1.3x recorded previously as 12 stocks gained against the 11 that lost. CHI PLC (+8.8%), Prestige (+7.4%) and FCMB (+5.2%) were top gainers while Mutual Benefit (-4.8%), Wema Bank (-3.1%) and Julius Berger (-2.6%) led the laggards.

The NSE 30

The NSE 30 Index marginally decreased by 0.01 per cent to close at 1,329.11 points as against 1,329.19 points as on the previous day. Market turnover closed with a traded volume of 232.52 million units. FCMB and Dangote Sugar were the key gainers, while Julius Berger and Ecobank were the key losers.

Treasury Bills

In spite of the excess system liquidity, the Nigerian Treasury-Bills market continues to trade quiet due to relatively low yields as the NT-Bills secondary market closed on a flat note with average yield across the curve remaining unchanged at 0.52 per cent. Average yields across short-term, medium-term, and long-term maturities closed at 0.37 percent, 0.85 percent, and 0.46 percent, respectively.

In the OMO bills market, buying interest was seen across short-term, medium-term, and long-term maturities with average yields falling by 4 basis points, 11 basis points, and 25 basis points, respectively while the average yield across the curve declined by 11 basis points to close at 0.31 per cent as against the last close of 0.42 per cent’ although yields on 10 bills declined with the 7-Sep-21 maturity bill recording the highest yield decline of 42 basis points, while yields on 14 bills remained unchanged.

Bond markets

FGN bond market closed positive on Wednesday, as the average bond yield across the curve, cleared lower by 38 basis points to close at 1.89 per cent from 2.27 per cent on the previous day. Average yields across short tenor, medium tenor, and long tenor of the curve compressed by 46 basis points, 16 basis points, and 8 basis points, respectively.

The 27-JAN-2022 maturity bond was the best performer with a decline in yield of 151 basis points, while the 26-APR-2029 maturity bond was the worst performer with an increase in yield of 7 basis points.