The Nigeria capital market attained new highs within the first two weeks of the year as the market capitalization increased by about N1.76 trillion within the period.
The All Share-Index for the first time attained N43,041.54 last week Thursday with market capitalization growing to 15.37 trillion, the highest since 2008.
The value of Nigerian equities increased by N1.5 trillion to end the last week on a positive note even as investors’ sentiments remained strongly positive as the local bourse recorded 4-day straight gains during the week.
The twin market performance measures, NSE ASI and market capitalisation rose by 10.21% and 10.95% to close at 42,899 points and a record high of N1.537 trillion respectively.
Also, all of the sectored gauges increased as the NSE Banking index, NSE Insurance index, NSE Consumer Goods Index, NSE Oil/Gas Index and NSE Industrial Index strengthened by 12.88%, 6.50%, 5.60%, 7.46% and 12.98% to close at 570.63 points, 155.35 points, 1,045.95 points, 358.76 points and 2,309.94 points respectively.
Elsewhere, transacted volumes and naira votes increased w-o-w by 107.76% and 266.64% to 5.02 billion shares and N68.97 billion respectively.
Meanwhile, Flour Mills of Nigeria is set to raise N39.86 billion from shareholders on the basis of nine new shares for every 16 shares held by shareholders whose names appeared in the register of members of the company as at December 8, 2017 at an issue price of N27.00 per share.
The company’s latest half year ended September 30 2017, and the financial report showed an improvement in the company’s Profit After Tax to N9.36 billion in 2017 from N6.46 billion in 2016.
Bargain hunting activity is expected to continue on positive investors’ sentiments this week.
Expert at FSDH have attributed the difference in the rate of change at the NSE ASI and Market Capitalisation to the additional listing of 12,133,646,995 ordinary shares of Union Bank Nigeria Plc from its Rights Issue of August 2017.
Expert at Cowry Assets Management anticipated bargain hunting activity to continue on positive investors’ sentiments this week.
Similarly, the naira strengthened against the US dollar at the Investors & Exporters Forex Window (I&E FXW) by 0.25% to N360.41/USD week-on-week (w-o-w) amid the injections by the Central Bank of Nigeria (CBN) worth USD210 million into the foreign exchange market of which USD 100 million was allocated to Wholesale (SMIS), USD55 million was allocated to Small and Medium Scale Enterprises and USD55 million was sold for invisibles.
However, the naira closed flat against the US dollar at both the parallel (‘black’) market segment and the interbank foreign exchange market segments at N363/USD and N330/USD respectively while it depreciated at the Bureau De Change by 0.28% to N361/USD despite weekly inventions and increased external reserves.
Meanwhile, all dated forward contracts at the interbank over-the-counter (OTC) segment appreciated on sustained increase in the foreign exchange reserves – spot rate, 1 month, 2 months, 3 months and 6 months contracts appreciated w-o-w by 0.05%, 0.39%, 0.49%, 0.58% and 0.77% to close at N305.80/USD, N364.22/USD, N368.40/USD, N372.91/USD, and 387.65/USD respectively.
This week, sustained stability is expected in the naira as global crude oil price retains its upbeat which should result in further build-up in foreign reserve.
NIBOR falls amid sustained liquidity ease
Meanwhile, CBN auctioned T-Bills worth N292.62 billion via Open Market Operations (OMO) while T-Bills worth N309.06bn matured via the same market, thus fully offsetting the outflows.
Consequently, Nigerian Inter-bank Offered Rate (NIBOR) for all maturities tracked decreased: overnight funds, 1 month, 3 months and 6 months tenor buckets fell w-o-w to 9.21% (from 19.07%), 14.49% (from 16.51%), 15.87% (from 17.26%) and 17.38% (from 18.51%) respectively.
Elsewhere, NITTY moved in mixed directions across all maturities tracked: yields on the 3 months and 12 months maturities increased to 14.25% (from 13.43%) and 15.35% (from 15.28%) respectively.
However, yields on the 1 month and 6 months maturities decreased to 12.99% (from 13.47%) and 14.84% (from 14.92%) respectively.
This week, players expect moderation in interbank lending rates on expected boost in financial system liquidity due to matured T-Bills worth N263.40 billion as well as anticipated FAAC disbursements to the three tiers of government.
Source: DAILY TRUST