Daily Market Update –December 18, 2012

The Money Market
Market opened today with a short position, as market liquidity declined further, rates therefore opened at 0.25% above the previous day close. However, shortly into trading, Federal Account Allocation Committee (FAAC) funds were credited into the system dropping rates significantly to as low as 10% levels. Hence, the market saw the secured OBB and the overnight funds trading at 10.50% and 10.75% respectively.

Treasury Bills Market
The market opened on a relatively stable note today, with most maturities trading at yesterday’s closing levels. The market however witnessed a bit of bullish interest on the March 2013 bills which dropped by an average of 0.15%. Major activity was centred on the 21/3 (93 days) which is to be reopened at the next auction.

The next Treasury Bills auction will be held on Wednesday December 19, 2012. The Central Bank would be offering ₦31.48 billion of 91day, ₦45 billion of 182day, and ₦55.13 billion of 364day treasury bills.

The Bonds Market
The Bond Market opened at yesterdays’ closing levels; however, the market saw an average of 15 kobo price appreciation on the June 2019. This is in anticipation of FGN Bond auction tomorrow, where DMO will be re-opening April 2017, June 2019 and Jan 2022.

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 ₦157.70 to a dollar with the naira depreciating further by 50 kobo due to demand pressures. Inflow from some oil company estimated at $120 million prevented further depreciation of the naira. The naira had depreciated yesterday by 43 kobo.

The Stock Market
Trading activities at the Nigerian Stock Exchange (NSE) remained bearish today, as market capitalisation of equities depreciated by 0.20% to close at ₦8.77 trillion, from ₦8.78 trillion.

The NSE All-Share Index also depreciated by 0.20% to close at 27,437.76 basis points as against yesterday’s record of 27,492.89; putting year-to-date returns at 32.35%.

UBA topped the volume chart today with 44.67 million units of shares valued at ₦202.21 million, while FIDELITY BANK followed, exchanging 27.79 million worth ₦63.40 million.

Market breadth was negative today with 20 gainers against 23 losers. INTBREW, REDSTAREX and UTC topped the gainers’ chart, gaining 5.63%, 5.32%, and 4.92% respectively, while ETERNA, JOHNHOLT and PHARMDEKO led market losers with respective losses of 5.00%, 4.83%, and 4.76%.