NSE Continues Free Fall,As Naira Hits N400per Dollar

The Nigerian Stock Exchange yesterday closed lower, as investors’ sell-offs of MTNN and TOTAL dragged the benchmark index by 0.05% to 21,729.48 points. Consequently, the Month-to-Date and Year-to-Date losses worsened to -17.1% and -19.1%, respectively.

According to experts at Condros Capital the total volume of trades decreased by 29.3% to 233.47 million units, valued at NGN2.24 billion and exchanged in 3,874 deals. GUARANTY was the most traded stock by volume and value at 49.70 million units and NGN874.78 million, respectively.

Analysing performances by sectors, all sectors recorded growth, save for the Oil & Gas (-1.0%) index, as the Banking (+2.9%), Insurance (+1.4%), Industrial Goods (+0.4%), and Consumer Goods (+0.2%) indices, all closed positive.

Market sentiment, as measured by market breadth, was positive (2.7x), as 19 tickers gained, relative to 7 losers. CUTIX (+10.0%) and CADBURY (+9.7%) were the top gainers, while TOTAL (-10.0%) and AFRIPRUD (-10.0%) recorded the largest losses of the day.

CURRENCY

The naira strengthened by 0.1% to NGN380.25/USD at the I&E FX window and closed flat at NGN400.00/USD at the parallel market.

MONEY MARKET AND FIXED INCOME

The overnight lending rate contracted by 175bps to 3.5%, given the still strong level of system liquidity – estimated at NGN520.64 billion.

Trading in the NTB secondary market was bearish, as the average yield across instruments expanded by 11bps to 3.6%. Yields expanded at the short (+2bps) and mid (+36bps) segments, following sell-offs of the 99DTM (+10bps) and 127DTM (+77bps) instruments, respectively; the long end of the curve was flat.

In the Treasury bonds secondary market, the average yield pared by 2bps to 11.9%. Across the curve, the average yields pared at the short (-2bps), mid (-3bps) and long (-1bps) segments of the curve, following buying interest in the JUL-2021 (-50bps), FEB-2028 (-14bps), and APR-2049 (-5bps) bonds, respectively.