Nigeria Market Trends (5th Oct., 2021)

October 5, 2021

The Nigerian Stock Exchange closed the Monday trading session of October 4th, 2021, on an exciting positive note, with all measured indices turning green. The Market Indices were affected by mixed investors sentiments due to sell-offs and buy-interests. Market breadth closed with 22 Gainers and 14 Losers in yesterday's session.

The NGX ASI closed at 40,243.05 points, to reflect a gain of 0.05% from the previous trading day gain of 1.59%, Investors gained a huge N382.06 billion. At the close of the market on Wednesday, 29th of September 2021, the stock exchange Equities gained 1.89% to N20.63 billion, the Bond market capitalization notched higher by 0.04% to N18.40 billion. Exchange-Traded Fund (ETF) also got a hit and edged lower by -1.35% bringing the Capitalisation down to N12.012 billion. The Markets Year-to-Date (YTD) return, however, is currently settled at –0.07%.

MARKET SNAPSHOT
S/n	INDICES	Closing Price
1	ALL SHARE INDEX	40,243.05
3	Equity Cap (N'Tn)	20,969,958,439,309.90
4	BOND CAP (N'Tn)	19,050,170,037,695.10
5	ETF CAP (N'Bn)	7,063,668,255.75

Market Developments
Access Bank: As part of its US$1.5bn funding plan Access Bank Plc issued a further US$500m Eurobond Offer that was 200% oversubscribed last week. The bond was offered at a coupon roughly 3% higher than the earlier September 2021 Issue. Notwithstanding, the higher coupon and the oversubscription of the Offer suggest that international investors were prepared to take up the private Issues of top-quality emerging market corporations at the right price.

DMO: Debt Management Office data revealed that Nigeria spent N1.47tn on debt servicing payments in the first half of 2021. It consists of N1.02tn in first quarter on both domestic and external debt servicing, while a total of N445.45bn was spent in the second quarter of 2021.

Analyst View

Naira depreciated by 0.12% at the official window from its previous rate of N413.38/$1 to a new N413.55/$1 as of Monday, October 5, 2021. The Naira also depreciated at the parallel market by 0.7% to N577/1$. The Naira is most likely to slide against the USD in days to come as the financial market is still troubled and Nigeria has little or no local alternatives to many imported items. The fallen value of the Naira at the black market rides on hoarding and speculative purchases.

SOURCE: NSE