Local Equities Index Moderates by 0.31% as Fixed Income Rates Rise


As NIBOR Falls for most Tenor Buckets amid Sustained Liquidity Ease…

The local bourse index contracted by 0.31% to 40,095.49 points amid renewed profit taking activity even as the Exchange printed 24 losers as against 14 gainers at the close of trading session.

Hence, the year-to-date loss of the NSE ASI worsened to -0.43%.

Sentiment was negative in the equities market as yields continue to journey northwards at the fixed income space. We saw the 364-day T- bill rise to 5.5% at the primary market yesterday.

Specifically, share prices of ZENITHBANK, NB, ACCESS and UACN moderated by 1.71%, 3.70%, 4.71% and 5.03% respectively.

Notably, losses were broad based as four out of the five indices tracked closed in red save the NSE Insurance index which rose by 0.24%.

The NSE Banking, NSE Consumer Goods, NSE Oil/Gas and the NSE Industrial indices fell by 1.44%, 0.79%, 0.14% and 0.001% respectively.

Meanwhile, trading activity was weak as total deals, volume and value of stocks traded fell by 16.51%, 30.56% and 47.56% to 4,567 deals, 0.32 billion units and N3.7 respectively as investors stay on the sidelines.

Elsewhere, NIBOR fell for most tenor buckets amid sustained liquidity ease; however, NITTY rose for maturities tracked in tandem with rising rates at the primary market.

In the OTC bonds market, the values of FGN bonds moved in mixed directions across maturities tracked; albeit, the value of FGN Eurobond fell for all maturities tracked.