The Nigerian equities market closed another week on a negative note as the NSEASI lost -0.63%WoW to close at 40,186.70pts. This brought the YtD return to -0.21%. All sectoral indices closed in the negative save for the NSEOILG5(+4.60%WoW) and NSEBNK10(+0.54%WoW). PORTPAINT (+14.44%) was the week’s top gainer, while CHIPLC (-28.26%) saw the largest share price depreciation.
During the week, the National Bureau of statistics released its inflation report for the month of January reporting an increase in headline inflation from 15.75%YoY in December to 16.47%YoY. The NBS also released Q4:2020 GDP figures. The Bureau’s report showed that Nigeria exited recession having witnessed a 0.11%YoY in Q4:2020. The growth was led by improvements in the non-oil sector (+1.64%YoY), while the oil sector declined by -19.76%YoY.
At the FGN bond auction this week, rates were significantly increased across all instruments on offer, much in line with our expectations. Meanwhile, the secondary market for FGN bonds remained bearish as average yield increased to 8.97% from 9.29% last week. The T-bills market on the other hand witnessed an uptick in demand as average yield fell 1.48% from 1.76%.
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