Nigerian Breweries, BUA Foods Sustain Equities Rebound As Naira Goes Bullish
Smarting from a proposed bonus issue of one new share for every four shares held, Nigerian Breweries Plc helped Nigeria’s equities market on Monday to extend last week’s gain as investors recovered a total sum of ₦113.90 billion in market capitalization.
The shares of the brewery giant gained +9.9 percent or N4.10 to close at N45.35 per share as bargain hunters jostled to position for the script issue before Tuesday, 6th of December, 2022 qualification deadline for the bonus.
Market positive performance was further strengthened by a +3.5 percent or N2.0 gain in the shares of BUA Foods which closed at N59 per share up from N57.
A 1.6 percent or 35kobo gain in Zenith Bank and +1.82 percent gain in FBNH also helped to lift the market to a 0.47 percentage gain in the benchmark All Share Index which closed higher at 44,701.84 points, the highest point since October 25.
Consequently, the Month-to-Date and Year-to-Date returns settled at +1.9 percent and +4.6 percent, respectively while the market capitalization gained ₦113.90 billion to close at ₦24.35 trillion.
The total volume of trades increased by 8.8 percent to 159.56 million units, valued at N1.95 million, and exchanged in 3,607 deals. TRANSCORP was the most traded stock by volume at 35.24 million units, while SEPLAT was the most traded stock by value at NGN478.00 million.
Sectoral performance was mixed, as the Consumer Goods (+1.8%), Banking (+1.3%), and Insurance (-2.6%) indices advanced, while the Industrial Goods index closed flat. The Oil & Gas (-0.3%) index was the sole loser of the day.
There was significant improvement in market sentiment as 26 stocks gained relative to five losers. NB (+9.9%) and NEM (+9.9%) topped the gainers’ list, while AIICO (-5.4%) and MANSARD (-5.1%) recorded the highest losses of the day.
Meanwhile, the naira appreciated by 0.1 per cent to N445.38 per dollar at the I&E window while the local currency depreciated by about N5.0 at the parallel market to close at N790 per dollar, down from N785 per dollar last Friday.
At the fixed income market, the overnight lending rate was flat at 16.5 percent, as the system liquidity settled at N266.50 billion.
Trading activities in the Treasury bills secondary market were mixed, albeit with a bullish tilt, as the average yield pared by 1bp to 10.6%.
Across the curve, the average yield contracted slightly at the short (-1bp), mid (-1bp), and long (-1bp) segments following mild interests in the 80DTM (-1bp), 171DTM (-1bp), and 339DTM (-2bps) bills, respectively. Similarly, the average yield contracted by 1bp to 10.2% in the OMO segment.
The Treasury bond secondary market traded with bearish sentiments, as the average yield expanded by 3bps to 14.3%. Across the benchmark curve, the average yield expanded at the short (+10bps) end due to the sell-off of the APR-2023 (+102bps) bond but contracted at the mid (-11bps) and long (-10bps) segments as investors demanded the APR-2029 (-15bps) and MAR-2035 (-40bps) bonds, respectively.