The positive momentum witnessed last week carried on this week, as the All Share Index advanced by 1.37% WoW to 39,840.28pts, improving the year to date (YTD) return to -1.07% (from -2.41% at the end of the previous week). With the exception of the NSEBNK10 and NSEFBT10, other sectoral indices closed positive this week, with NSEINS10 (+3.80%) and NSEIND (+2.36%) leading the pack. ROYALEX (+47.22%) was this week’s top gainer, while HONYFLOUR shed 17.14% to emerge as the worst performer.
On the corporate scene, Q1:2021 earnings season hit full throttle this week as most companies (including DANGCEM, WAPCO, NEM, FCMB, SEPLAT, TOTAL, FBNH, GUINNESS and others) released their first quarter results, sporting largely mixed performance across sectors.
The market’s attention was drawn to the regulatory clampdown on FBNH by the Central Bank of Nigeria, after the Tier 1 bank’s board of directors abruptly fired the sitting Managing Director. The regulator (CBN) subsequently sacked and has now appointed new board members, opting to retain the current Managing Director.
As we had expected, this week’s T-Bill PMA saw stop rates on the 91 and 182-day unchanged, while that on the 1-year bill ticked up by 75bps to 9.75%. The DMO finally allotted NGN129.46bn – 1.46x more than the initial NGN88.46bn on offer. In the secondary market , bearish sentiments held firm as average T-Bills and bond yields rose to 5.00% and 12.02% (from 4.74% and 11.47% at the end of the previous week).
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