Daily Market Update –January 21, 2013

The Money Market
The market was still very liquid as a result of the Federal Accounts Allocation Committee (FAAC) funds disbursed last week. Consequently, OBB and Overnight funds remained stable at 10.25% and 10.50% respectively contrary to market expectations as the CBN did not carry out any OMO auction today to mop up the excess liquidity.

Treasury Bills Market
The bullish trend continued today, as the market witnessed an average drop in yields by 0.30% across all tenor buckets. Emphasis was on the short and medium tenured bills which dropped by an average of 0.45%. This was basically because of the expectation that all key economic indices will be maintained at the MPC meeting today.

The next Treasury Bills auction will be held on Wednesday, January 23, 2013 according to the calendar released by The CBN. The CBN would be offering ₦34.8 billion of 91 day, ₦50 billion of 182 day, and ₦80 billion of 364 day treasury bills.

The Bonds Market
The Bond Market opened stable at last week’s closing levels. The market witnessed some volatility across board as it got deeper into the trading day. With the demand pressure, prices across all trading bonds appreciated by an average of 35 kobo.

The Foreign Exchange Market
The Foreign Exchange Market opened today at ₦157.10 to a dollar with the naira appreciating by 6 kobo due to ease in demand pressures. Unspecified inflows from some oil companies prevented depreciation of the naira. The naira had depreciated yesterday by 6 kobo.

At the WDAS auction held today, the Central Bank was sold $100.00 million at ₦155.73 to the dollar against the $106.48 million it sold at ₦155.72 to the dollar during last Wednesday's auction.

The Stock Market
Trading activities at the Nigerian Stock Exchange (NSE) turned bearish today, as market capitalisation of equities depreciated by 0.27% to close at ₦9.87 trillion, from ₦9.89 trillion.

The NSE All-Share Index also depreciated by 0.27% to close at 30,842.54 basis points as against last Friday’s record of 30,927.18; putting year-to-date returns at 9.84%.

UBA topped the volume chart today with 62.61 million units of shares valued at ₦392.50 million, while UNITY BANK followed, exchanging 62.58 million worth ₦35.13 million.

Market breadth remained positive today with 33 gainers against 25 losers. INTBREW, UNITYBNK and PRESCO topped the gainers’ chart, gaining 9.72%, 9.62%, and 9.56% respectively, while UAC-PROP, DANGFLOUR and MORISON led market losers with respective losses of 10.00%, 5.57% and 4.91%.