Bullish sentiments returned to the local bourse this week as buying activities lifted the NSE All Share Index by 7.46% week on week to 36,804.75pts. All sectoral indices closed positive, led by the NSEINS10 (+13.39%) and NSEIND (+7.74%). FTNCOCOA led the gainers chart after gaining 40.91% WoW, while MANSARD shed 60.00% off its share price to emerge as the week’s worst performer.
The week started off on a pleasant note as the market received news of the World bank’s approval of Nigeria’s USD1.5bn loan request. During the week, the National Bureau of Statistics published the inflation and capital importation reports for November and Q3:2020 respectively. While headline inflation maintained an uptrend, increasing by 14.89%YoY in November (vs. 14.23%YoY in October), total value of capital imported into Nigeria slid by 74.03%YoY to USD1.46bn.
The Federal Government also approved the reopening of four of the country’s borders, namely – Seme, Ilela, Maigatari and Mfum, this week. Recall that the FG’s directive to shut the borders took effect in August 2019.
In the fixed income space, the DMO conducted a PMA for T-bills worth NGN7bn this week, attracting NGN121.53bn in subscriptions. Stop rates ticked up to 0.05% on the 91-day paper and down to 0.50% and 1.14% on the 182 and 364 day papers. Bearish sentiments dominated the secondary bonds market this week as average yields rose by 61bps to 5.24%.
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