Profit-taking activities at the start of the week gave way to sustained buying interests, pushing the NSEASI up 2.19% WoW to close at 34,885.51pts. All sectoral indices under our coverage (save for the NSEINS10 and NSEOILG5) closed positive this week, with the industrial sector (NSEIND) seeing the most gain (2.87% WtD). NEIMETH emerged as the top gainer this week, with a share price gain of 12.03%, while JAPAULOIL shed 11.11%, ending the week as the biggest laggard.
The National Bureau of Statistics (NBS) released Q3:2020 GDP figures over the weekend. Economic output declined for the second consecutive quarter, confirming that the country had entered into its second recession in the last five years. The monetary policy committee (MPC) of the CBN held its last meeting for the year this week. The Committee voted to retain the benchmark rate at 11.50%, while keeping all other parameters constant (CRR: 27.50%, Liquidity ratio: 30.00%, Asymmetric corridor: +100/-700bps around the MPR).
At this week’s PMA, the CBN’s NGN150.60bn offer was met with NGN445.94bn in subscriptions. Expectedly, stop rates declined further across board to 0.02%, 0.09% and 0.15% (vs. 0.03%, 0.15% and 0.30% at the previous auction). In the secondary market for T-bills, yields continued to dip, as average yields declined from 0.09% to 0.04%.
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