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Equities Market Rebounds, Up 0.13%

Ololade Julianah, Lagos

The Nigerian Stock Exchange (NSE) on Tuesday performed additional due diligence checks on its trading systems prior to commencing trading. Trading activities however commenced at 11:00am as against 10:15am while trading closed an hour later than usual at 3:30pm.

The All Share Index appreciated by 33.15 basis points or 0.13 per cent to close at 24,659.17 points as against 24,626.02 points recorded on Monday, while Market Capitalisation grew by N11.406 billion to close at N8.482 trillion from N8.470 trillion recorded in the last trading day.

Market activities saw a rise as the total value traded jumped by 152.9 per cent to N1.440 million from N552.7 million, while the total volume traded rose by 72.6 percent to 228.9 million units. Market breath came in at a strong 1.3x, as 22 equity prices appreciated while 16 declined.

Ecobank Transnational Incorporated led the gainers’ table at the close of trading on Tuesday when it appreciated by 70 kobo to close at N14.70 per share, followed by breweries’ major, Guinness Nigeria which grabbed 35 kobo to close at N99.84 per share, Guaranty Trust Bank gained 35 kobo to close at N15.70 per share, Zenith Bank added 22 kobo to close a trading at N11.521 per share, while Tiger Branded Consumer Goods nicked 11 kobo to close at N2.41 per share, among others.

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However, breweries’ major, Nigerian Breweries, led the decliners’ table when it went down by 200 kobo to close at N102.50 per share, followed by Okomu Oil Palm which depreciated by 152 kobo to close at N30.48 per share, UAC of Nigeria dropped 97 kobo to close at N18.43 per share,   PZ Cussons Nigeria lost 87 kobo to close at N20.35 per share, while Cement Company of Northern Nigeria shed 23 kobo to close at N6.45 per share, among others.

United Bank for Africa emerged the most traded equity with an exchange of 62.208 million shares worth N201.235 million. It was trailed by Guaranty Trust Bank; having accounted for 29.811 million shares valued N466.200 million, while Zenith Bank sold 29.713 million shares worth N339.535, NEM Insurance exchanged 10.627 million shares valued N8.468 million, while United Capital traded 9.734 million shares worth 14.274 million.

Reacting to the performance on Tuesday, analysts at United Capital said: “Despite some Q12016 results hitting the market, reaction to these numbers seem muted as investors continue to grapple with the impact of on-going challenges in the broader economy. We therefore expect the market to trade within a tight range at tomorrow’s session, with investors likely to remain cautious”.

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Meanwhile, Nigerian Interbank Treasury Bills true yields moved heterogeneously – yields on the one month and three months tenors increased to 3.96 per cent and 6.69 per cent respectively. However, six months and twelve months tenured bills decreased to 9.17 per cent and 10.953 percent respectively. Similarly, interbank offered rates moved in mixed directions – NIBOR for overnight funds and 1 month increased to 6.05 percent and 8.77 percent respectively. However, NIBOR for three months and six months increased to 8.77 percent and 12.75 percent respectively.

OTC FGN bond prices depreciated further for most maturities on sustained sell pressure – 20-year, 10.00 percent FGN July 2030 bond, 10-year, 16.39 percent FGN January 2022 paper and 7-year, 16.00 percent FGN June 2019 bond shed N2.05 (yield rose to 12.96 per cent), N3.33 (yield increased to 12.64 per cent, and N1.86 , yield rose to 12.22 per cent respectively.