The Nigerian equities market continued its bearish run this week as the NSEASI fell by 3.04% WoW to 40,439.85pts. All sectoral indices closed negative with the NSEBNK10 (-8.76%) recording the most decline. MBENEFIT (+10.53%) emerged as the week’s top gainer, while NNFM (-18.84%) was the biggest loser for the week.
The Securities and Exchange Commission (SEC) announced the suspension of its plan to regulate cryptocurrencies until operators are able to open bank accounts in Nigeria. Meanwhile, Ecobank Nigeria, a subsidiary of ETI, announced the successful completion of its USD300mn Eurobond issuance which was 3 times oversubscribed.
On the broader macroeconomic front, the Federal Executive Council approved the Medium Term Debt Management Strategy for 2020 – 2023. Under the new strategy, maximum Debt-to-GDP ratio was revised to 40% from 25% while the target ratio of domestic to foreign debt was put at 70:30 from 60:40. Also, the Federal Government approved the establishment of Infra-Co with a seed fund of NGN1trn to be funded by NSIA, CBN and AFC.
At the primary market auctions for Treasury bills held during the week, stop rates increased to 1.00%, 2.00% and 4.00% (vs. 0.55%, 1.30% and 2.00%) across the 91-Day, 182-Day and 364-Day instruments. The secondary market for treasury instruments was however bearish as average T-bills and bond yields increased to 8.97% and 1.76% from 7.97% and 0.99% respectively.
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