Daily Market Update –December 19, 2012

The Money Market
The Money Market remained liquid today as a result of statutory disbursements credited into the system yesterday. Rates dropped further by 0.25%, causing the secured OBB and the overnight funds to close at 10.25% and 10.50% respectively.

Treasury Bills Market
Activity in the Treasury Bills Market improved today with buying interest witnessed across most maturities, dropping yields an average of 0.15%. This was basically fuelled by the anticipation of slightly lower yields at the Primary Market Auction which held today.

The Bonds Market
The Bond Market was quite volatile today. Despite the auction today, the market witnessed intraday prices uptick from opening levels. Major yield movement was witnessed on the April 2017 bond, which dropped by 0.30%.

The December Bond Auction held today, December 19, 2012 as indicated in the offer circular released by the Debt Management Office (DMO). The DMO offered ₦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 ₦158.15 to a dollar with the naira appreciating by 40 kobo due to ease in demand pressures. Unspecified inflows from some oil companies, including offshore counterparties for the Bond Auction, assisted in strengthening the naira. The naira had depreciated yesterday by 50 kobo.

At the WDAS auction held today, the Central Bank sold $300.00 million at ₦155.77 to the dollar against the $200.00 million it sold at the same rate during last Monday's auction.

The Stock Market
Trading activities at the Nigerian Stock Exchange (NSE) remained bearish today, as market capitalisation of equities depreciated by 0.32% to close at ₦8.74 trillion, from ₦8.77 trillion.

The NSE All-Share Index also depreciated by 0.32% to close at 27,349.11 basis points as against yesterday’s record of 27,437.76; putting year-to-date returns at 31.93%.

GUINEA INSURANCE topped the volume chart today with 42.62 million units of shares valued at ₦21.31 million, while IPWA followed, exchanging 38.65 million worth ₦19.32 million.

Market breadth turned positive today with 27 gainers against 24 losers. PRESCO, IKEJAHOTEL and CONOIL topped the gainers’ chart, gaining 7.03%, 5.00%, and 4.98% respectively, while DNMEYER, ACADEMY and CUSTODYINS led market losers with respective losses of 9.73%, 9.50%, and 7.69%.