Daily Market Update –November 20, 2012

The Money Market

The Money Market was awash with liquidity due to the statutory allocation (FAAC) disbursement the previous day. Rates on overnight funds and the secured borrowings closed at 10.50% and 10.25% respectively.

Interest rates are expected to increase slightly tomorrow as authorised dealers fund for FX purchased from the CBN at the WDAS auction on Monday. There is also a possibility of the CBN mopping up excess liquidity from the system.

Treasury Bills Market

The Treasury Bills Market was moderately active today, basically because of the MPC meeting held today and the expectation of possible monetary policy easing. Yields dropped by an average of 0.15% across board. Significant change in rate is not expected as demand remains high as reflected in the recent auctions.

The next Treasury Bills auction will be held tomorrow, Wednesday November 21, 2012 according to the calendar released by The CBN. The CBN would be offering ₦30.6 billion of 91 day, ₦45 billion of 182 day, and ₦40.5 billion of 364 day treasury bills.

The Bonds Market

The buying frenzy continued today in the Bond Market as another price uptick of about ₦1 was seen across all trading instruments. Prices were supported at these levels as bulls held the day. The FGN bond auction would hold tomorrow, Wednesday, November 21, 2012. The DMO would be offering ₦25 billion each of the 7year 16% June 2019 and the 10year 16.39% Jan 2022 instruments.

 

The Foreign Exchange Market

The Foreign Exchange Market opened today at ₦157.90 to a dollar with the naira appreciating by 5 kobo due to ease in demand pressures. Undisclosed amount of offshore inflows contributed to the appreciation of the naira.

The Stock Market

Trading activities at the Nigerian Stock Exchange (NSE) was bullish today, as market capitalisation of equities appreciated by 0.35% to close at ₦8.40 trillion, from ₦8.37 trillion.

The NSE All-Share Index also appreciated by 0.35% to close at 26,358.73 basis points as against yesterday’s record of 26,267.57; putting year-to-date returns at 27.15%.

UNIC INSURANCE topped the volume chart today with 90.00 million units of shares valued at ₦45.00 million, while ACCESS BANK followed, exchanging 70.72 million worth ₦608.31 million.

Market breadth was negative today with 23 gainers against 27 losers. UACN, BAGCO and PORTPAINT topped the gainers’ chart, gaining 7.45%, 7.11%, and 4.87% respectively, while ACADEMY, UNITYBNK and UAC-PROP led market losers with respective losses of 10.00%, 8.47%, and 6.51%.

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