The Nation Newspaper

Tag: equities

  • Equities hit new low as return worsens to -7.41%

    Total market value of Nigerian equities dropped for the seventh consecutive trading session to N12.928 trillion yesterday as benchmark indices at the Nigerian Stock Exchange (NSE) indicated average year-to-date return of -7.41 per cent.

    Investors lost N13 billion or 0.10 per cent in the five-hour trading session yesterday, continuing a decline that had turned the market from a double-digit average gain to negative return.

    With nearly two of every three trades closing on the downside, the benchmark index for the equities market showed every average investor with potential loss of 7.41 per cent so far this year. When adjusted in line with the benchmark index, this is equivalent to total loss of more than N1 trillion so far this year.

    Aggregate market value of all quoted equities on the NSE declined from its opening value of N12.941 trillion to close at N12.928 trillion. The All Share Index (ASI)-the main value-based index that tracks share prices at the stock market, also dropped from its opening index of 35,446.47 points to close at 35,410.61 points. Equities capitalisation had opened this year at N13.609 trillion while the ASI opened at 38,243.19 points.

    All sectoral indices closed in the red, underlining the widespread selloffs across the sectors. The NSE Banking Index declined by 0.8 per cent. The NSE Insurance Index dropped by 0.5 per cent. The NSE Oil and Gas Index dipped by 0.3 per cent while the NSE Consumer Goods Index and NSE Industrial Goods Index slipped by 0.01 per cent each.

    “We expect the bearish performance to be sustained till midweek as investors continue to take profit following some unimpressive first half 2018 releases,” analysts at Afrinvest Securities stated.

    Guinness Nigeria led the 26-stock losers’ list with a drop of N4 to close at N90. Flour Mills of Nigeria followed with a loss of 60 kobo to close at N24. Oando and United Bank for Africa (UBA) declined by 30 kobo each to close at N5.25 and N9.15 respectively while Guaranty Trust Bank (GTB) and Dangote Sugar Refinery lost 20 kobo each to close at N38.80 and N15.30 respectively.

    Total turnover stood at 160.43 million shares valued at N2.21 billion in 3,120 deals. UBA was the most active stock with a turnover of 30.6 million shares. FBN Holdings followed with a turnover of 14.0 million shares while GTB placed third with a turnover of 13.9 million shares.

    On the positive side, 11, formerly Mobil Oil Nigeria, led the 14-stock gainers’ list with a gain of N4 to close at N180. International Breweries followed with a gain of N1.45 to close at N33.45. UAC of Nigeria rose by N1 to close at N14. Eterna and Stanbic IBTC Holdings added 65 kobo each to close at N7.20 and N50 respectively while Nigerian Breweries chalked up 50 kobo to close at N103.50 per share.

     

  • Equities open August with N147b loss

    Against the background of a net capital depreciation of N456 billion in July, Nigerian equities started the new month on a negative note as investors continued realignment of their portfolios.

    Benchmark indices at the Nigerian Stock Exchange (NSE) showed average decline of 1.09 per cent yesterday, representing net capital depreciation of N147 billion. This depressed the average year-to-date return for Nigerian equities to -4.26 per cent.

    The All Share Index (ASI)-the main value-based index at the Exchange dropped by 404.95 basis points or 1.09 per cent to close at 36,612.83 points. Aggregate market value of all quoted equities also declined correspondingly by N147 billion to close at N13.263 trillion.

    With 21 gainers and 24 losers, the decline was driven by losses recorded by mid and large-cap stocks including Nestle Nigeria, International Breweries, Chemical & Allied Products (CAP), Dangote Cement and Nigerian Breweries.

    Most sectoral indices closed negative with the NSE Consumer Goods Index leading with a drop of 2.3 per cent. The NSE Banking Index declined by 0.7 per cent while the NSE Industrial Goods Index dipped by 0.4 per cent. On the positive side, the NSE Oil & Gas Index appreciated by 0.6 per cent while the NSE Insurance Index closed flat.

    Neimeth  International Pharmaceuticals recorded the highest price gain of 10 per cent, to close at 55 kobo per share. Jaiz Bank gained 8.62 per cent to close at 63 kobo, while Okomu Oil appreciated by 8.43 per cent to close at N81 per share. Mutual Benefit Assurance appreciated by 8.33 per cent  to close at 39 kobo, while Union Diagnostic & Clinical Services gained 7.69 per cent to close at 28 kobo per share.

    On the negative side, CAP and Royal Exchange led the losers with a drop of 10 per cent each, to close at N31.50 and 27 kobo per share respectively. International Breweries shed 9.73 per cent to close at N33.40, per share. Unity Bank declined by 9.30 per cent to close at 78 kobo while Equity Assurance dropped by 9.09 per cent to close at 20 kobo per share

    Total turnover stood at 240.21 million shares worth N4.99 billion in 3,494 deals. Zenith Bank topped the activity chart with 94.86 million shares valued at N2.19 billion. United Bank for Africa followed with 28.67 million shares worth N271.9 million while Nigerian Breweries traded 15.11 million shares valued at N1.55 billion.

    Analysts were cautiously optimistic of a rebound in the medium to long-term, although political and macroeconomic risks are expected to continue to moderate the attractive valuations of Nigerian equities in the immediate period.

    “We guide investors to trade cautiously in the short-to-medium term, as the absence of a positive one-off catalyst and brewing political concerns, continue to cast a shadow on our outlook for risky assets. However, the likelihood of recovery in the long term remains supported by stable macro-economic fundamentals,” Cordros Capital stated.

  • Equities lose N456b in July despite H1 earnings

    Nigerian equities lost N456 billion in July as political risks overshadowed potential corporate earnings in first half. The steep decline in July left investors with a seven-month net loss of N199 billion yesterday as against net capital gain of N257 billion recorded at the end of first half.

    Benchmark indices at the Nigerian Stock Exchange (NSE) closed on the negative, with the average month-on-month decline of 3.29 per cent and year-to-date decline of 3.20 per cent. Most large-cap quoted companies have already released their half-year results, in line with extant rules at the Nigerian stock market which requires quoted companies to submit their quarterly report not later than 30 days after the end of the quarter.

    The All Share Index (ASI) – the main value-based index that tracks share prices at the Nigerian Stock Exchange (NSE) closed yesterday at 37,017.78 points as against 38,278.55 points recorded at the beginning of the month.

    Aggregate market value of all quoted equities at the NSE also declined to close July at N13.410 trillion compared with N13.866 trillion recorded at the beginning of the month.

    From a net capital gain of about N1.7 trillion at the height of its rally in the first quarter, Nigerian equities had closed the second quarter almost flat with average gain of 0.09 per cent for the six-month period ended June 30, 2018, compared with average gain of 8.53 per cent recorded at the end of first quarter.

    Nigerian equities had recorded average loss of 7.77 per cent in the second quarter, equivalent to net capital depreciation of N1.13 trillion compared with capital gain of N1.384 trillion recorded by the end of first quarter. The ASI closed the first half at 38,278.55 points as against its 2018’s opening index of 38,243.19 points. Aggregate market value of all quoted equities on the NSE closed the six-month period at N13.866 trillion as against N13.609 trillion recorded at the beginning of the year, representing net gain of N257 billion or 1.88 per cent. The difference between the ASI and aggregate market value was due to supplementary listings of shares.

    Aggregate market value of all quoted equities had closed the first quarter of 2018 at N14.993 trillion as against its year’s opening value of N13.609 trillion, representing a net increase of N1.384 trillion or 10.17 per cent. The ASI also rose from its 2018’s opening index of 38,243.19 points to close the first quarter at 41,504.51 points, representing average gain of 8.53 per cent.

    Nigerian equities had in January 2018 hit all-time high with market capitalisation of N15.3 trillion while the ASI had risen to 43,041.54 points, its highest index points since October 2008. However, profit-taking fluctuations that started in March 2018 worsened considerably into a swinging selloff in May 2018. Nigerian equities lost N1.15 trillion in May 2018, equivalent to average month-on-month decline of 7.67 per cent.  Nigerian equities had lost N557 billion in March and showed restraint with a modest loss of N44 billion in April.

    The chequered performance of the stock market in first half 2018 counterbalanced the optimism that started the year as Nigerian equities closed 2017 with full-year average return of 42.30 per cent, ranking within the top 10 best-performing equities across the world. Aggregate market value of quoted equities had closed 2017 with net capital appreciation of N4.36 trillion.

    Analysts said they expected attractive valuations due to the recent share price decline and considerable growth in corporate earnings to stimulate price recovery.

    “We expect this bullish sentiment to be maintained in subsequent trading sessions as investors take position ahead of the release of more first half 2018 results. Nevertheless, we do not rule out the possibility of profit taking following four consecutive days of gains,” Afrinvest Securities stated.

     

  • Equities rally N29b gain amid bargain-hunting

    Nigerian equities yes-terday broke a two-day downtrend with a net capital gain of N29 billion as investors sought to take advantage of low share prices. With more companies releasing their half-year results, investors traded on a tit-for-tat to moderate the downtrend that had shaped transactions in the previous trading sessions.

    Average gain yesterday stood at 0.22 per cent, equivalent to net capital gain of N29 billion. Average year-to-date return, though still negative, improved marginally to -4.75 per cent.

    The All Share Index (ASI)-the value-based index that tracks share prices at the Nigerian Stock Exchange (NSE), increased from its opening index of 36,346.80 points to close at 36,427.22 points. Aggregate market value of all quoted equities improved from N13.167 trillion to close at N13.196 trillion. With 20 gainers and losers each, the positive overall market position was driven by gains recorded by large-cap stocks.

    Sectoral indices showed considerable underlying positive trend as all indices closed on the upside. The NSE Banking Index and NSE Insurance Index rose by 0.8 per cent each. The NSE Consumer Index and NSE Industrial Goods Index appreciated by 0.2 per cent while the NSE Oil and Gas Index inched up by 0.1 per cent.

    Nestle Nigeria led the gainers with a gain of N51 to close at N1,501. Cement Company of Northern Nigeria appreciated by N2.30 to close at N28.50. NASCON Allied Industries rose by 50 kobo to close at N20.50. Zenith Bank increased by 45 kobo to close at N23.70. Cutix gathered 39 kobo to close at N4.38 while FBN Holdings rose to 25 kobo to close at N9.65 per share.

    On the downside, International Breweries led the losers with a drop of N2 to close at N35.50. Flour Mills of Nigeria followed with a loss of N1.50 to close at N27.20. Dangote Cement declined by N1 to close at N234. Custodian Investment lost 54 kobo to close at N5.56 while Dangote Sugar Refinery and Nigerian Breweries dipped by 50 kobo each to close at N15 and N104 respectively.

    Total turnover stood at 171.22 million shares valued at N2.98 billion in 3,595 deals. Zenith Bank was the most active stock with a turnover of 30.29 million shares worth N717.23 million. United Bank for Africa followed with a turnover of 21.71 million shares worth N205.71 million while FCMB Group placed third with 19.01 million shares worth N35.97 million.

    “We expect the market to close the week in the green, supported by bargain hunting in fundamentally sound stocks as observed in today (Thursday)’s trading session,” Afrinvest Securities stated.

     

     

  • Equities continue slide with N101b loss

    Nigerian equities continued on the downside yesterday as investors lost N101 billion to capital depreciation. Benchmark indices at the Nigerian Stock Exchange (NSE) declined by an average of 0.76 per cent, depressing further the negative average year-to-date return to -4.64 per cent.

    The All Share Index (ASI)-the main index for the equities market, dropped by 278.13 absolute points, representing a decline of 0.76 per cent to close at 36,470.05 points as against its opening index of 36,748.18 points. Total market capitalisation of quoted equities declined correspondingly by N101 billion to close at N13.211 trillion compared with its opening value of N13.312 trillion.

    With 27 losers to 20 gainers, the market appeared to show increased bargain-hunting despite the negative overall market position. Most sectoral indices closed positive. The NSE Oil & Gas Index rose by 1.2 per cent. The NSE Banking Index and NSE Insurance Index appreciated by 0.2 per cent each while the NSE Industrial Goods Index closed flat. However, the NSE Consumer Goods Index declined by 2.5 per cent.

    Nestle Nigeria led the losers with a drop of N84.70 to close at N1,442.30. Nigerian Breweries followed with a loss of N2.40 to close at N105.60. International Breweries lost N1.80 to close at N39.20. Zenith bank dropped by N1 to close at N22.95 while UAC of Nigeria declined by 75 kobo to close at N13.25 per share.

    On the positive side, Guaranty Trust Bank led the gainers with a gain of N1.45 to close at N38. Dangote Sugar Refinery followed with a gain of N1.20 to close at N19.50. Oando rose by 45 kobo to close at N5.20. Eterna added 40 kobo to close at N6.90 while NASCON Allied Industries gathered 25 kobo to close at N20.25 per share.

    Total turnover stood at 296.59 million shares valued at N4.86 billion in 3,684 deals. Guaranty Trust Bank topped the activity chart with 78.36 million shares valued at N2.98 billion. Med-View Airline followed with 50 million shares worth N102.25 million while Zenith Bank placed third with 26.51 million shares valued at N608.97 million.

    Analysts at Cordros Capital noted that continued sell-offs and the absence of a near term one-off positive catalyst continues to dampen the outlook for equities in the short-to-medium term.

    “However, strengthened macro-economic fundamentals remain supportive of gains in the long term,” Cordros Capital stated.

    “We maintain that the current sentiment will persist tomorrow. Looking ahead, position taking in fundamentally sound stock remains the only bullish trigger,” SCM Capital stated.

    Analysts at Afrinvest Securities however noted that the Relative Strength Index (RSI) yesterday further fell to 27.5 points below the oversold benchmark, thus cautious optimism on the possibility of a rebound over the near term, buoyed by positive first half 2018 earnings results.

     

  • Equities lose N110b as return drops to -3.35%

    Nigerian equities lost N110 billion yesterday at the Nigerian Stock Exchange (NSE) as continuing selloff depressed the average year-to-date return for Nigerian equities to -3.35 per cent. With more than two losers for every gainer, a broad price depreciation across the sectors pushed share prices of most equities to their lowest in recent period.

    The All Share Index (ASI)-the value-based index that tracks share prices at the Exchange, declined to 36,963.70 points as against its opening index of 37,266.86 points. Aggregate market value of all quoted companies also dropped from its opening value of N13.500 trillion to close at N13.390 trillion.

    Despite the beginning of the earnings season for the first half with the release of six-month results of some quoted companies, most investors continued to trade on the sell side. Most sectoral indices closed negative, underlining the widespread price depreciation across the sectors.

    The NSE Industrial Goods Index dropped by 2.4 per cent. The NSE Oil & Gas Index declined by 1.3 per cent. The NSE Consumer Goods Index dipped by 1.2 per cent while the NSE Banking Index depreciated by 0.9 per cent. However, the NSE Insurance Index inched up by 0.2 per cent.

    There were 33 losers against 14 gainers. Okomu Oil Palm led the losers with a drop of N7 to close at N85. Stanbic IBTC Holdings followed with a loss of N3.95 to close at N47.55. Lafarge Africa and International Breweries dropped by N3 each to close at N34.50 and N37.50 respectively. Julius Berger Nigeria lost N2.70 to close at N24.30. GlaxoSmithKline Consumer Nigeria dropped by N1.85 to close at N16.70 while PZ Cussons Nigeria declined by N1.70 to close at N15.40.

    Total Turnover stood at 203.8 million shares valued at N2.39 billion in 4,178 deals. Transnational Corporation of Nigeria, which released an impressive first half result on Monday, led the activity chart with a turnover of 20.7 million shares. Access Bank followed with a turnover of 19.5 million shares while Zenith Bank placed third with 15.4 million shares.

    On the upside, Dangote Cement led the contrarian stocks with a gain of N3 to close at N230. Dangote Sugar Refinery followed with a gain of 45 kobo to close at N17.95. Custodian Investment rose by 19 kobo to close at N5.70 while Eterna and Flour Mills of Nigeria chalked up 10 kobo each to close at N6.50 and N30 respectively.

    “Despite today (Tuesday)’s loss, investor sentiment improved slightly, albeit still soft. Hence, we envisage that the sell offs will be continued in tomorrow’s session, but we do not rule out the possibility of a rebound before the end of the week,” Afrinvest Securities stated.

  • Equities sink to lowest point in 2018

    Nigerian equities dropped to their lowest valuation point so far this year yesterday as investors continued a long-running selloff that had seen the equities market trending downward from all-time high in January to their lowest point in 2018.

    The benchmark index for Nigerian equities-the All Share Index (ASI) declined by 0.45 per cent to close yesterday at 37,253.25 points, its lowest index point. The average year-to-date return worsened to -2.59 per cent. Nigerian equities had closed first half almost flat with a marginal average gain of 0.09 per cent, after reaching as high average return of 17.9 per cent in January 2018.

    Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) dropped from its opening value of N13.556 trillion to close yesterday at N13.495 trillion, representing a net capital depreciation of N61 billion.

    Most sectoral indices closed on the downside, underlining the widespread selloff, especially within the large-cap stocks in the dominant manufacturing sector. The NSE Industrial Goods Index declined by 2.3 per cent. The NSE Insurance Index dropped by 1.0 per cent while the NSE Consumer Goods Index dipped by 0.5 per cent. On the downside, the NSE Oil & Gas Index appreciated by 1.7 per cent while the NSE Banking Index inched up by 0.01 per cent.

    There were 25 losers to 17 gainers. Julius Berger Nigeria led the losers with a drop of N3 to close at N27. International Breweries followed with a loss of N2.65 to close at N38.35. Dangote Cement lost N2 to close at N225. Lafarge Africa declined by N1.85 to close at N33.90. Flour Mills of Nigeria dropped by 25 kobo to close at N30.75 while Eterna and NEM Insurance declined by 20 kobo each to close at N6.80 and N3.20 respectively.

    Total turnover stood at 287.09 million shares valued at N3.75 billion in 3,526 deals.  Access Bank was the most active stock with 116.02 million shares valued at N1.21 billion. Zenith Bank followed with a turnover of 41.05 million shares worth N999 million while Transnational Corporation of Nigeria placed third with 23.73 million shares valued at N29.14 million.

    On the upside, Mobil Oil Nigeria led the gainers with a gain of N15.50 to close at N180.50. Forte Oil rose by N1.45 to close at N31.30. Nigerian Breweries appreciated by N1 to close at N111. Custodian Investment rallied by 57 kobo to close at N6.27. UAC of Nigeria added 35 kobo to close at N13.55 while Zenith Bank chalked up 20 kobo to close at N24.40 per share

    Most analysts agreed that the steep decline in share prices has created bargain opportunities that may drive a recovery in the days ahead.

    “Despite the bearish performance of today (Wednesday), we noticed some bargain hunting close to the end of trading. Hence, we expect to see a rebound in market performance in subsequent sessions as investors hunt for bargains,” Afrinvest Securities stated.

  • Equities lose N82b as selloff worsens

    There were more than two losing stocks for every gaining stock yesterday at the Nigerian Stock Exchange (NSE) as investors opened up their offers to lower prices to attract buyers.

    Benchmark indices at the Exchange indicated average decline of 0.60 per cent, equivalent to net capital depreciation of N82 billion within the five-hour trading session yesterday. The decline depressed the negative average year-to-date return to -2.15 per cent.

    The All Share Index (ASI)-the common value-based index that tracks share prices at the Exchange declined from its opening index of 37,647.93 points to close at 37,421.01 points. Aggregate market value of all quoted equities also dropped from its opening value of N13.638 trillion to close at N13.556 trillion.

    With 27 losers to 12 gainers, all sectoral indices closed negative. The Industrial Goods Index and NSE Insurance Index declined by 2.7 per cent each. The NSE Banking Index and NSE Oil & Gas Index dropped by 1.1 per cent each while the Consumer Goods Index depreciated by 0.6 per cent.

    “We opine that the current bearish sentiment in the market is driven by some institutional investors reducing their positions in bellwethers stocks. Nevertheless, we believe an upturn in performance in the near term, will be buoyed by bulk bargain hunting in some fundamentally sound stocks,” Afrinvest Securities stated.

    Oil and gas stocks led the losers with Seplat Petroleum Development Company leading with a loss of N15 to close at N635. Total Nigeria followed with a loss of N10 to close at N200. Lafarge Africa declined by N2.25 to close at N35.75. Guaranty Trust Bank dropped by N1.40 to close at N40.10 while Nigerian Breweries lost N1.10 to close at N110 per share.

    On the positive side, Forte Oil led the gainers with a gain of N2.70 to close at N29.85. Custodian Investment rose by 49 kobo to close at N5.70.Ecobank Transnational Incorporated appreciated by 20 kobo to close at N20.60. Unilever Nigeria chalked up 15 kobo to close at N51.70 while Cement Company of Northern Nigeria (CCNN), NEM Insurance and Access Bank added 10 kobo each to close at N23, N3.40 and N10.50 respectively.

    Total turnover stood at 213.20 million shares valued at N3.76 billion in 4,043 deals. Zenith Bank was the most active stock with 39.93 million shares worth N965.09 million. FBN Holdings followed with 21.69 million shares valued at N227.22 million while Transnational Corporation of Nigeria placed third with 21.61 million shares valued at N26.97 million.

     

  • Equities continue downtrend with N124b loss

    The downtrend at the Nigerian equities market worsened yesterday as investors continued a selling spree that had seen the market opening the second half with a loss of N120 billion. Altogether, Nigerian equities have lost N244 billion in the first two trading session in the second half.

    With more than two losers for every gainer, average benchmark indices at the Nigerian Stock Exchange declined by 0.9 per cent, representing a net capital depreciation of N124 billion. This further depressed the negative average year-to-date return to -1.7 per cent.

    Aggregate market value of all quoted equities dropped from its opening value of N13.746 trillion to close at N13.622 trillion. The All Share Index (ASI) also declined from its opening index of 37,946.92 points to close at 37,605.12 points.

    All sectoral indices closed in the red with the exception of the NSE Insurance Index, which rose by 0.6 per cent. The NSE Industrial Goods Index declined by 1.5 per cent. The NSE Banking Index dropped by 1.3 per cent. The NSE Oil & Gas Index lost 1.2 per cent while the NSE Consumer Goods Index dipped by 1.1 per cent.

    There were 30 losers against gainers. Nestle Nigeria led the losers with a drop of N65 to close at N1,510. 11 followed with a loss of N9.90 to close at N190. Lafarge Africa declined by N1.50 to close at N39.45. Dangote Cement dropped by N1.30 to close at N222.80 while Cadbury Nigeria declined by 70 kobo to close at N12.30 per share.

    On the positive side, Beta Glass led the contrarian stocks with a gain of N4.15 to close at N90.45. Unilever Nigeria followed with a gain of N2.50 to close at N55. Nigerian Breweries added 80 kobo to close at N113.90. Red Star Express chalked up 50 kobo to close at N6.50 while Custodian Investment rose by 38 kobo to close at N5.50 per share.

    Total turnover stood at 254.8 million shares valued at N2.6 billion. Multiverse was the most active stock with a turnover of 100 million shares valued at N20 million. Zenith Bank followed with a turnover of 16.5 million shares worth N403.28 million while Guaranty Trust Bank placed third with 13.01 million shares worth N515.96 million.

    “In line with our expectation, market performance was bearish today and we expect this to be sustained in subsequent sessions as investor sentiment stays soft. However, we do not rule out the possibility of some end of the week bargain hunting as investors take advantage of attractive market prices,” Afrinvest Securities stated.

    Analysts at the SCM Capital said they expected the market to remain downbeat.

     

     

  • 2019 elections: Equities sell-off by foreign investors to persist

    • FGN Bonds face under-subscription 

    Foreign investors are expected to continue divestments in Nigerian equities market as the 2019 general elections approach and the need for them to secure their investments heightens, analysts have predicted.

    Analysts at Afrinvest Limited, an investment and research firm, said the bearish run in the bonds market has been sustained following selloffs by local and offshore investors. They said local Pension Administrators were the majority players in the bonds market with major selloffs witnessed across the March-2027 and July-2034 instruments.

    “At the FGN Bonds Auction last week Wednesday, the 12.75 per cent Federal Government of Nigeria (FGN) April 2023 bond and 13.53 per cent FGN March 2025 instruments were 58.6 per cent and 45.5 per cent undersubscribed respectively. On the flip side, the 13.98 per cent FGN February 2028 instrument was 2.4 times oversubscribed as more investors positioned at the long end of the curve,” they said.

    In an emailed report to investors, Afrinvest explained that in the near term, it expects sustenance in the bearish sentiment leading to an appreciation in yields in the bonds market. “This is against the backdrop of Federal Government’s need to fund the 2018 budget as well as continued sell-offs by offshore investors ahead of 2019 general elections,” it said.

    It said a Primary Market Auction (PMA) is slated for this Wednesday with the Central Bank of Nigeria (CBN) offering N9.5 billion, N33.9 billion and N127.1 billion across the 91, 182 and 364-day tenors, with expectation of higher marginal rates across tenors.

    “We expect liquidity level (N79.5 billion positive) to remain tight at the beginning of the week as market anticipates FAAC inflows to ease situation. Also, an Open Market Operation (OMO) maturity of N238.7 billion is expected to hit the system on Thursday.

    “With a boost in system liquidity from these inflows, we expect the CBN to conduct OMO auctions in the early trading sessions of this week. In addition, we anticipate renewed buying interests by investors in the secondary market following attractive rates. FGN Bonds Market Update: Sustained Sell Offs Expected to Buoy Yields in the Bonds Market,” the report added.

    Last week, performance in the T-Bills market was bearish on the back of sustained selloffs by offshore investors across the emerging markets. As a result, average rates across all tenors advanced 20basis Points to close at 12.40 per cent.

    The CBN conducted OMO auction once last week – on Monday – in a bid to mop up the excess liquidity in the system (N841.9 billion positive), ahead of expected Federation Accounts Allocation Committee (FAAC) inflows and OMO maturities.

    However, investors’ bearish sentiment towards the OMO auctions witnessed in recent times was sustained as the auction was 84.3 per cent jointly undersubscribed (N350 billion offered as against N549.4 million subscription) – albeit 38 per cent higher than the previous week’s under-subscription rate. Investors’ weak appetite was on the back of more attractive investment options in the secondary market.