Investors stake N8.509 billion on FGN bonds in one week

Patronage for  Federal Government of Nigeria (FGN) bonds was impressive last  week,the Over -The -Counter (OTC) market for FGN bonds recording a turnover of 972.737 million shares worth N8.509 billion in 13,745

This figure is almost double compared to total of  571.077 million shares valued at N5.246 that exchanged hands in the preceding week.

The Nigerian capital market maintained the bullish trend that began trading activities in the year after reaping 0.36% at the end of trading activities Tuesday.

The Nigerian Stock Exchange recorded gains   in four out of the total five trading days so far in the year, a development analysts  see as positive signs of what to come this year.

Banking stocks  led the league of gainers so far in the year.  FCMB, PRESCO, SKYEBANK, FIDELITY and STERLNBANK are some of the counters that have gained  more than 20% in five  days.

The stock market opened for four days this week as Tuesday was declared a public holiday to mark the New Year celebration.

 
At the end of transaction last week, the Financial Services sector was the most active when measured in volume terms with 654.080 million shares worth N5.765 billion exchanged hands by investors in 8,625 deals

 
Volume in the sector, according to the Nigerian Stock Exchange (NSE), was largely driven by activities in the shares of Zenith Bank Plc, First City Monument Bank Plc, Fidelity Bank Plc and  FBN Holdings Plc, as trading  in the shares of the four Banks accounted for 308.139 million  shares, which represents  47.11per cent  and  31.68pe cent  of the sector turnover and total turnover traded during the week respectively.

 
The conglomerates sector was boosted by activity in the shares of Transnational Corporation of Nigeria Plc with a turnover of 166.455 million shares valued at N174.680 million in 458 deals.

 
The Consumers Goods sector ranked third with 61.541 million shares valued at N1.731 billion, exchanged in 2,261 deals.

 
Volumes in the shares of the three sectors accounted for 883.808 million shares valued at N7.723 billion traded in 11,457 deals, thus representing 90.86 per cent, 90.76 per cent and 83.35 per cent, of the volume, value and number of deals respectively.

 
Also traded during the week were 438 units of NewGold Exchange Traded Funds (ETFs) valued at N1.108 million exchanged hands in four deals in contrast to a total of 213 units valued at N539.090 million transacted last week in 2 deals.

 
There were no transactions through the stock market in the FGN Bonds, State/Local Government Bonds and Corporate Bonds/Debentures sectors.

 
Meanwhile the NSE All-Share index appreciated by 2.41 per cent to close at 28,538.06.while market capitalisation of the listed equities appreciated by 2.41 per cent to close at N9.121 trillion during the week.

 
All but one of the sectoral indices appreciated, the Bloomberg NSE 30, Bloomberg NSE Consumer Goods, Bloomberg NSE Banking, Bloomberg NSE Insurance and Bloomberg NSE Oil/Gas index appreciated by 2.61per cent, 1.54per cent, 8.31 per cent, 3.56 per cent and 0.84 per cent respectively. However, NSE Lotus II depreciated by 1.06 per cent.

 
On the price movement chart 51 equities gained, while 12 equities recorded price declines and prices of 132 equities remained constant.

 
When compared with the preceding week, 31 equities gained while 21 equities recorded price declines and prices of 143 equities remained constant.

T-Bills rates across tenors declined Tuesday with the 6-Month bill recording the highest loss of 0.19%.  We expect rates to adjust upwards in the week in response to the CBN’s auction of  NGN166.41bn t-bills of varying maturities by January 10.

At the interbank market, all tenors of NIBOR gained  today; a likely impact of liquidity shrink in the system.

The local currency appreciated against the greenback at the inter-bank market closing at NGN156.5/USD vs. the previous close of  NGN157.00 (a 0.32% gain). CBN sale  of USD150m yesterday partly accounts for the appreciation