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

NSE vows to enhance retail investment opportunities

NSE vows to enhance retail investment opportunities   The Nigerian Stock Exchange has expressed its commitment to redefining and improving investors’ overall experience in the Nigerian capital market, and ensuring that it remains modern, convenient and secure. This was highlighted at the inaugural edition of the Retail Investors’ Webinar hosted by the Exchange in collaboration with the Nigerian International Securities Limited on Monday. The event, with the theme ‘Capital market investing in a digital age’, was supported by the Chartered Institute of Stockbrokers and the Association of Securities Dealing Houses of Nigeria. Speaking during the webinar, the Chief Executive Officer, NSE, Mr Oscar Onyema, said, “Investor participation is central to the growth and sustainable development of any economy. “The Exchange is, therefore, committed to facilitating conversations that will expound on the retail investment opportunities available in the capital market and the chann...
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

Petrol scarcity looms as tanker drivers halt operations

Petrol scarcity looms as tanker drivers halt operations   Petrol scarcity may surface across the country as the Nigerian Association of Road Transport Owners on Monday ordered tanker drivers nationwide to halt operations beginning from Tuesday (today). NARTO gave the directive in Abuja in protest against the Federal Government’s ban on petroleum trucks above 45,000 litres from plying Nigerian roads. NARTO is the umbrella organisation of all commercial vehicles owners in Nigeria engaged in the haulage of petroleum products, general cargoes, and movement of goods and passengers within the country and the West-African sub-region. Speaking at a press briefing in Abuja, NARTO’s National President, Yusuf Othman, said members of the association would have to park their trucks on Tuesday and Wednesday as warning to government against the abrupt ban. He said, “NARTO received with grave shock the recent government decision to place immediate ban on all petroleum trucks above 45,...
Post a Comment
Read more