Daily Market Update –February 7, 2013

The Money Market
Interest rates dropped further today by an average of 0.50% as there was excess liquidity in the system due to T-bills maturities and Excess Crude disbursements late yesterday. Rates are expected to remain stable despite liquidity tightening activities by the CBN.

Treasury Bills Market
The Treasury bills market remained in a bullish mood today with yields dropping by an average of 0.20% on the short and medium tenured bills while the long tenured bills decreased by about 0.15% despite the OMO auction for settlement today.

The Bonds Market
The bullish run continued in the bond market and prices trended 20 kobo higher from previous close. However, prices came down as the market saw a bit of intraday profit taking by the locals. It is expected that market will remain at these levels as most investors are likely to replace their maturing bonds due this month (about ₦385 billion in maturity).

The Foreign Exchange Market
The Foreign Exchange Market opened today at ₦157.30 to a dollar with the naira depreciating by 2 kobo due to demand pressures. Inflow from an oil company sales estimated at $37 million prevented further depreciation of the naira. The naira had depreciated by 10 kobo yesterday.

The Stock Market
Trading activities at the Nigerian Stock Exchange (NSE) turned bearish today, as market capitalisation of equities depreciated by 0.72% to close at ₦10.63 trillion, from ₦10.71 trillion.

The NSE All-Share Index also depreciated by 0.72% to close at 33,219.20 basis points as against yesterday’s figures of 33,460.14; putting year-to-date returns at 18.31%.

UNITY BANK topped the volume chart today with 129.62 million units of shares valued at ₦118.85 million, while TRANSCORP followed, exchanging 127.98 million worth ₦228.41 million.

Market breadth remained positive today with 43 gainers against 30 losers. WEMABANK, DNMEYER and PRESTIGE topped the gainers’ chart, gaining 9.84%, 9.68%, and 9.68% respectively, while TRANSCORP, UBN and NASCON led market losers with respective losses of 7.69%, 7.13% and 4.90%.