Appetite weakens for Treasury bonds, stocks gain marginally
Bearish sentiments were witnessed in the secondary market for Treasury bonds on Wednesday as the yields on eight instruments trended upwards while only one instrument was bullish.
The remaining seven Federal Government bonds traded sideways. Consequently, the average bond yield advanced to 14.95 per cent.
At the close of trades, the open buy-back and overnight rates declined to 27.17 per cent and 29.17 per cent apiece. Hence, the average money market rate shed 2.33 per cent to settle at 28.17 per cent.
In the Treasury bills space, the bears outstripped the bulls, causing an advancement in yields on all tenors of the yield curve.
The one-month, three-month, six-month, nine-month and 12-month tenors recorded advancements in yield by 0.45 per cent, 0.25 per cent, 0.51 per cent, 0.10 per cent and 0.17 per cent, respectively, causing an upward movement in the average T-bill yield by 0.30 per cent to 17.32 per cent.
Meanwhile, the Nigerian equities market closed positive, albeit marginally, as the All-Share Index rose two basis points to settle at 36,608.76 points while the year-to-date gain closed flat to 36.2 per cent.
Accordingly, equities market capitalisation increased by N7.3bn to N12.8tn.
Analysts at Afrinvest Securities Limited said the market performance could be primarily accredited to buying interest in Nestle Nigeria Plc, Zenith Nigeria Plc and Unilever Nigeria Plc, which appreciated by 3.1 per cent, 1.3 per cent and 5.7 per cent, respectively.
The gains were said to have offset losses in Nigerian Breweries Plc, Ecobank Transnational Incorporated Plc and Flour Mills Nigeria Plc, which respectively declined by three per cent, 2.9 per cent and 4.9 per cent.
Similarly, activity level improved as volume and value traded advanced by 28.4 per cent and 68.9 per cent to 331.2 million units and N5.6bn, respectively. Also, there was an off-market transaction of 69.4 million units of Union Bank of Nigeria Plc at N6.80/share with a total value of N471.7m in three separate cross deals.
Sector performance was broadly positive as three of the five major indices closed positive while two closed flat.
The consumer goods index gained the most, rising by 0.3 per cent on the back of price appreciations in Nestle Nigeria, Unilever and Dangote Sugar Refinery Plc.