Skip to main content

Market Update


 News Spotlight

Inflation Rises to a 25-Month High of 12.4%
The Consumer Price Index report showed that headline inflation rose to a 25-month high of 12.40% Year-on-Year in May 2020, from 12.34% in the prior month.

The headline inflation increased by 1.17% Month-on-Month; this is 0.15% higher than the rate of 1.02% recorded in the previous month. The yearly average rose to 11.79% this current month, this is 0.08% greater than 11.71% recorded in the previous month.

Notably, core inflation rose faster by 14bps to 10.12% Year-on-Year from 10.0% in April 2020, the highest since July 2018. However, core inflation increased 5bps slower at 0.9% on the Month-on-Month basis, the first moderation since February 2020. Meanwhile, food inflation was little changed at 15.04% Year-on-Year from 15.03% in the previous month.
Stock Market - YTD Performance -7.51% 
The NSE ASI depreciated during the week, as it recorded a bearish performance due to losses in 4 of 5 trading sessions, as it plunged 1.4% week-on-week.

Bellwether stocks such as SEPLAT, NB, ETI, DANGCEM, etc. lost -9.99%, -9.52%, -8.26%, and -6.47% respectively. The NSE ASI and market capitalization now stand at 24,826.75bps and N12.95 trillion, respectively.

This brought the year-to-date figure of the ASI to -7.51% from -6.18% last week. The bearish performance recorded during the week was anchored by the Oil & Gas index which lost -4.9%.

Fixed Income
Treasury Bills

The Treasury Bills market performance was bullish as average yield across benchmark tenors trended lower, down 93bps w/w to close at 2.3%.

The PMA result was relatively strong with a bid to cover ratio of 6.2x and stop rates printing at 1.80%, 2.04% and 3.746% on the 91-Day, 182-Day and 364-day maturities, respectively.

Bonds

The domestic bond market maintained its bullish momentum, recording an average decline of 69bps in yields to close the week at 9.34%. The DMO conducted a bond auction this week, offering a total of ₦150.0bn across the 3-year, 15-year, and 30-year instruments.

Overall, the auction was oversubscribed with a bid to cover ratio of 3.6x. The longer-dated instrument recorded the most subscription with a bid to cover ratio of 4.7x. The short and mid-dated bond instruments also recorded a strong bid to cover ratios of 3.4x and 2.5x, respectively.

The DMO allotted a total of ₦100.0bn across the short-dated (₦32.99bn), midterm (₦16.22bn) and long-dated (₦50.79bn) instruments. Meanwhile, stop rates printed at 8.00%, 11.00%, and 12.15% for the short, mid, and long-term instruments.

Eurobonds

The Nigeria Eurobond market finished on a slightly bearish note week on week as average yield rose 2bps to settle at 7.26% from 7.24% last week  


Price-to-Earnings Ratio (P/E Ratio)

This is the ratio for valuing a company that measures its current share price relative to its earnings per share. The price-to-earnings ratio is also sometimes known as the price multiple or the earnings multiple.

This ratio is used to determine the relative value of a company’s shares. It can also be used to compare a company against historical records or to compare aggregate markets against one another or over time.

Comments

Post a Comment

Popular posts from this blog

N-Power: FG extends Batch C enrolment Aug 8

FG extends Batch C N-Power enrollment to August 8 Add caption The Federal Government says the enrolment for Batch C scheme of the N-Power Programme which started on June 26 will now close on August 8. Minister of Humanitarian Affairs, Disaster Management and Social Development, Sadiya Umar-Farouq, who disclosed this via  Twitter on Sunday night, said over 5 million applications have been received for the scheme. The Federal Government plans to enrol 400,000 applicants in the Batch C scheme. Batches A and B of the programme who are about to exit the programme held a rally at the National Assembly Complex last week, requesting FG to employ them as well as pay them a grant of N600,000 each. Providing an update on the development, the minister said on Sunday, “I received the news of a protest at the National Assembly by N-Power Batch A and B beneficiaries who presented a list of demands which we are reviewing and will address as practically possible. “Let me reiterate that th...
Post a Comment
Read more

Local investors take charge as foreign investors remain cautious amid FX scarcity

Local investors take charge as foreign investors remain cautious amid FX scarcity Renewed positive sentiments in the global space dominated markets in the month of May as investors’ optimism for a speedy economic recovery continues to support appetite for risky assets. This is also coming on the heels of ease in lockdown and gradual reopening of economic activities. In Nigeria, domestic investors took the driving seat at the nation’s equities market in the month of May as they took positions in cheap and dividend-paying bellwether stocks. On the other hand, foreign investors who are unable to move their funds from the country due to FX scarcity rolled their money back into the equities market. In the month of May, total value of transactions executed by domestic Investors out performed transactions executed by Foreign Investors by 40percent. According to data released by the Nigeria Stock Exchange, total transactions executed between May and April revealed that total domest...
Post a Comment
Read more

NAIRA WEAKENS TO LOWEST IN THREE YEARS

NAIRA WEAKENS TO LOWEST IN THREE YEARS The Naira yesterday weakened to the lowest in over three years in the parallel market due to increased demand for dollars amid foreign-currency shortages. The local currency depreciated to N495 to a dollar yesterday, lowest since February 23, 2017, widening the gap with the official rate of N379.5 to over 30 per cent. The currency traded in the interbank market at 389.74 as of 4:54p.m. in Lagos. Agency reports quoted traders as alleging a groundswell of diversion of dollars, a development which heightened scarcity of the green back in the parallel market this week. There is a diversion of inflows away from official channels to the parallel market due to the gap in rates, Murega Mungai, trading desk manager for Aza Finance said in a note Thursday. The market spread has created arbitrage opportunities for recipients of remittances such as exporters and private individuals. Pent up demand in the foreign exchange market is not unprecedente...
Post a Comment
Read more