The equities market rebounded on Thursday as the Nigerian Stock Exchange market capitalisation appreciated by N41bn.
A total of 111.898 million shares valued at N4.012bn were traded in 2,699 deals.
The NSE market capitalisation rose to N9.479tn from N9.438tn, while the NSE All-Share Index closed at 27,598.34 basis points from 27,478.04 basis points.
The Nigerian bourse recovered from a three-day downward trend, up by 0.44 per cent from the last close on ample gains in the banking sector.
After receding to a negative year-to-date return in the previous session, the financial services sector recovered from its brief year-to-date loss position and was at the heart of the ASI turnaround, after investors received the nine-month 2016 earnings of Guaranty Trust Bank Plc, which appreciated by 5.11 per cent, coupled with advances in FCMB Group Plc by 3.67 per cent and Access Bank Plc by 1.44 per cent.
The oil and gas sector snapped a five-day rout following gains in Seplat Petroleum Development Company by 1.94 per cent and Oando Plc by 1.39 per cent. Mobil Oil Nigeria Plc also inched higher by 0.54 per cent amid news of Exxon Mobil’s (majority shareholder) decision to sell its 60 per cent equity stake to NIPCO Investments Limited.
The consumer goods sector rose by 0.12 per cent with mixed performances across International Brewery Plc by five per cent, Guinness Nigeria Plc by 1.38 per cent, while Dangote Sugar Refinery Plc lost by 2.19 per cent.
Stocks in the industrial goods sector closed flat.
Market breadth turned positive with 20 advances and 14 declines.
On the global scene, while Asian stocks closed higher, European markets traded slightly lower ahead of the European Central Bank meeting later today and as investors digested a raft of disappointing earnings. The United States futures pointed to a higher open.
On what will shape today’s trading session, analysts at Vetiva Capital Management Plc, said, “We highlight that market sentiment turned around, particularly within the banking sector following earnings release from GTB – a pointer of what to expect from other banks.
“We think this underscores our erstwhile view that investors currently maintain a wait-and-see approach to Q3 earnings and believe this approach will persist in the sessions ahead.”
Meanwhile, the interbank call rate dropped further by 409 basis points to 14.83 per cent on the back of improved liquidity. At the foreign exchange interbank market, the naira remained unchanged against the dollar at N304.75 while the one-year forward rate fell to N348.14 (previous: N355).
The Central Bank of Nigeria held a Primary Market Auction in Wednesday’s session, selling N21bn, N28bn, and N32bn on the 91-day, 182-day, and 364-day bills at stop rates of 14 per cent, 17.09 per cent, and 18.30 per cent respectively (effective yields: 14.51 per cent, 18.68 per cent, and 22.39 per cent).
In Thursday’s session, the Treasury bills market extended its bullish run as yields declined 28 basis points on average. With the 182-day bill settling at a lower rate than secondary market levels, buying was weighted around the mid end of the space with yields on the 105 day-to-maturity, 203DTM, and 266DTM bills dropping to 17.53 per cent, 18.08 per cent, and 18.56 per cent respectively.
Meanwhile, the bond market traded nearly flat as large advances on the 16.39 per cent FGN January 2022 bond (up 13 basis point to 14.88 per cent) offset moderations on the 14.20 per cent FGN March 2024 and 12.50 per cent FGN January 2026 bonds which moved three basis points and four basis points to 15.01 per cent and 15.29 per cent respectively.
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