Daily Market Update –December 14, 2012

The Money Market
Market liquidity declined further today due to the WDAS debit totalling ₦28 billion. As a result, rates went up by about 1.00%. Thereupon, the secured OBB and the overnight funds traded at 14.55% and 14.75% respectively. An improvement in market liquidity is expected next week as the market anticipates the credit of FAAC funds (Federal Account Allocation Committee) into the system.

Treasury Bills Market
The Treasury Bills Market was relatively active today with a slight downward movement in yields by an average of 0.05% across most tenured maturities. However, a bearish trend was witnessed on the short tenured bills (lower than 50days) which went up by an average 0.20%.

The Bonds Market
The Bond Market opened slightly higher than previous close. Some demand on the Jan 2022 and June 2019 was seen as prices appreciated by an average of 25 kobo and 50 kobo respectively. Other maturities relatively closed flat with minimal activities seen.

The December Bond Auction will be held on Wednesday, December 19, 2012 as indicated in the offer circular released by the Debt Management Office (DMO). The DMO will be offering ₦16.5 billion, ₦30 billion and ₦30 billion of the Apr 2017, Jun 2019 and Jan 2022 bonds respectively.

The Foreign Exchange Market
The Foreign Exchange Market opened today at ₦157.68 to a dollar with the naira appreciating by 13 kobo due to ease in demand pressures. Inflow from an oil company estimated at $80 million supported the demand in the market today.

The Stock Market
Trading activities at the Nigerian Stock Exchange (NSE) remained bullish today, as market capitalisation of equities appreciated further by 0.082% to close at ₦8.85 trillion, from ₦8.84 trillion.

The NSE All-Share Index also appreciated by 0.08% to close at 27,685.54 basis points as against yesterday’s record of 27,663.52; putting year-to-date returns at 33.55%.

NIGER INSURANCE topped the volume chart today with 50.07 million units of shares valued at ₦25.04 billion, while TRANSNATIONAL CORPORATION followed, exchanging 21.84 million worth ₦19.51 million.

Market breadth was positive today with 24 gainers against 17 losers. OANDO, MAYBAKER and TRANSCORP topped the gainers’ chart, gaining 4.94%, 4.67%, and 4.60% respectively, while PZ, UBA and CCNN led market losers with respective losses of 6.72%, 6.38%, and 4.93%.