Persistent sell-offs in GTBank, BUACem, Guinness drove the bears on Tuesday as investors lost N78.5bn in post-Easter trading

Charles Abuede

The Nigerian Equities Market started the new week on a bearish note, with traders and investors alike coming back from the short Easter break to extend the persistent bearish run the market has been experiencing into the fourth trading session as investors lost N78.5 billion on the first trading day in April.

The local bourse resumed the week with a loss due to sell-offs in GTBank (-3.3%), BUA Cement (-1.1%), and Guinness Nigeria Plc (-8.1%). Consequently, the All-Share Index declined by 0.39 per cent to settle at 38,766.6 points with the market year to date loss worsening to -3.7 –per cent and market capitalisation decreased to N20.28 trillion from N20.36 trillion as on the last close.

Similarly, the level of trading activity declined as volume and value exchanged plunged 6.2 per cent and 7.4 per cent respectively to 224.6 million units and N2.1 billion. The most traded stocks by volume were UAC Nigeria (34.0m units), Access Bank (26.3m units), and First Bank Holding (18.9m units) while Zenith Bank (N364.3m), GTBank (N338.6m), and UAC Nigeria (N337.6m) led by value.

Across the sectoral fronts of the market, the performance was bearish as 5 out of 6 indicators closed negative and the ICT index closing flat. The Banking index led the laggards, down 1.7 per cent due to sell-offs in Sterling Bank (-8.7%), GTBank (-3.3%) and Zenith Bank (-0.9%). On the same note, the Industrial goods and Insurance indices declined by 0.5 per cent apiece on the back of sell-offs in BUA Cement (-1.1%), Wapco Plc (-0.7%), Aiico Insurance (-3.2%) and Custodian Insurance Plc (-1.4%). Similarly, the Consumer goods and Oil & Gas indices fell by 0.4 per cent and 0.1 per cent respectively as we saw some price depreciation in Guinness Nigeria Plc (-8.1%), International Breweries (-8.7%), and Oando Plc (-3.1%).

Elsewhere, the investor sentiment, as measured by market breadth weakened to 0.7x from the 0.8x recorded previously as 14 stocks gained against 21 decliners. Eterna Plc (+9.9%), Linkage Assurance (+9.7%) and Royal Exchange (+9.1%) were the top gainers while MRS Oil (-9.9%), ALEX (-9.9%) and Consolidated Hallmark Insurance Plc (-9.4%) were the top decliners.

The NSE 30

On Tuesday, the NSE 30 Index decreased by 0.50 per cent to close at 1,540.80 points as against 1,548.58 points as on the previous day. Market turnover closed with a traded volume of 126.43 million units. FCMB and First Bank Holding were the key gainers, while Sterling Bank and Guinness Nigeria Plc were the key losers.

FX market

Also, at the I&E segment of the foreign exchange market, the Naira depreciated by 0.29 per cent as the dollar was quoted at N410.50 as against the last close of N409.30. Most participants maintained bids between N401.10 and 413 per dollar.

Treasury Bills

The T-bills secondary market closed on a positive note with average yield across the curve decreasing by 16 basis points to close at 3.98 per cent from 4.14 per cent on the previous day. The average yields across medium-term maturities declined by 49 basis points. However, the average yield across short-term and long-term maturities closed flat at 2.40 per cent and 5.47 per cent, respectively. Yields on 7 bills declined with the 16-Sep-21 maturity bill recording the highest yield decline of 107 basis points, while yields on 12 bills remained unchanged.

In the OMO bills market, the average yield across the curve declined by 5 basis points to close at 6.33 per cent as against the last close of 6.38 per cent. Buying interest was seen across medium-term and long-term maturities with average yields falling by 14 basis points and 4 basis points, respectively. However, the average yields on short-term maturities closed flat at 4.20 per cent. Yields on 14 bills compressed with the 7-Sep-21 maturity bill recording the highest yield decline of 49 basis points, while yields on 8 bills remained unchanged.

The Bonds

The FGN bonds secondary market closed on a mildly negative note on Tuesday, as the average bond yield across the curve cleared higher by 1 basis point to close at 6.77 per cent from 6.76 per cent on the previous day. Average yields across medium tenor and long tenor of the curve widened by 17 basis points and 2 basis points, respectively. However, the average yields across short tenor declined by 2 basis points. The FGN 10-APR-2021 Sukuk bond was the best performer with a decline in yield of 11 basis points, while the 23-FEB-2028 maturity bond was the worst performer with an increase in yield of 34 basis points.