- Naira sheds 2.12% at NAFEM to close at N1, 596.92/$
The local stock market wrapped up the week on a positive trajectory, with the benchmark All-Share Index increasing by 4bps day-on-day and 87bps week-on-week, reaching 100,539.40 points.
This reflects a year-to-date growth of 34.46 percent.
The day’s performance was chiefly driven by gains in UCAP (+1.63%), FCMB (+3.25%), and MTNN (+1.99%), which eclipsed the losses in GTCO (-0.77%), ZENITHBANK (-0.54%), and UBA (-1.93%).
As a result, market capitalization saw an uptick of N20 billion, totaling N56.94 trillion. Notably, market breadth settled at 1.21 xs, as 35 stocks advanced while 29 declined.
On a weekly scale, both the volume and value of trades saw an upward trend, growing by 43.48 percent and 34.36 percent to 603.88 million units and N9.16 billion, respectively.
FCMB, JAIZBANK, and UCAP were the top three stocks by volume, with 114.12 million units, 103.35 million units, and 56.76 million units traded.
Regarding trade value, UCAP led with N2.29 billion in transactions, followed by GTCO with N1.70 billion, and ZENITHBANK with N1.10 billion.
Meanwhile, money market liquidity opened the day in a deficit of N379.55 billion, marking a N450.75 billion improvement from N830.30 billion at the start of the week.
Week-on-week, the Open Buy Back (OBB) rate and the Overnight (OVN) rate slid by 22bps and 43bps to 31.39 percent and 32.02 percent, respectively.
The Treasury Bills market witnessed a quiet week with a bearish undertone. The 6 March and 22 May bills were largely offered at 23.50 percent and 21.75 percent respectively, while bids remained scarce. Nonetheless, trades consummated on the 27 March bill at 22.90 percent and the 10-July-25 bill at 20.65 percent.
There was also minimal demand on the 24-Oct-25 bill bid at 20.00 percent while the 1-Apr-25 bill was offered at 24.25 percent.
At the OMO auction last week, N150billion was offered across the standard maturities, but no sales were made.
There were no subscriptions for the short and mid tenored bills, while the 363-day paper recorded a total subscription of N39 billion with bids ranging from 23.22 percent -24.71 percent . Week-on-week, the average benchmark yield rose 94bps to close at 24.55 percent.
The scene in the FGN local bond Market remained subdued with demand seen on the SK 33s bid at 15.80 percent and the old 33s while offers remained scarce. In addition, bids were quite elevated on the MAY 33s at 21.95 percent while improved offers were seen on FEB 34s at 21.30 percent.
Furthermore, the off the run 29-year bond was quoted 17.90/17.80 with the old 28s and 29s bid at 19.90 percent while offers remained scarce. At the mid end of the curve, we saw offers on the 36s at 19.10 percent. Week-on-week, the average benchmark yield rose 12bps to 19.09 percent.
The FGN Eurobond market displayed a bullish bias at the start of the week supported by Powell’s speech in which he highlighted the two-sided risks to interest rate decisions.
Although he didn’t specify the timing of the Federal Reserve’s actions on rates, he suggested that a rate hike is unlikely in the near term.
However, there was a reversal of this trend as investors indulged in profit taking activities.
Furthermore, data in the review week showed that the United States Retail Sales for June remained flat while the initial jobless claims printed at 243K vs 230K expected and 223K prior. Week-on-week, the average benchmark yields gained 30bps, settling at 9.87 percent.
The value of the Naira to the dollar depreciated by 2.12 percent to print at N1, 596.92/$ last week at the Nigerian Autonomous Foreign Exchange Market Window.
