The Nigerian equities market took a twist on Monday to commence the week on a bearish note as banking stocks recorded an all-time high selloff in what experts attributed to the Central Bank of Nigeria’s recent forbearance directive.
Consequently, losses in ACCESSCORP (-8.3%), ZENITHBANK (-6.4%), FIRSTHOLDCO (-6.03%) UBA (-5.7%), and FIDELITYBK (-4.94%) alongside other 39 stocks dragged the All-Share Index (NGX ASI) down by 0.15% to 115,258.77 points from 115,429.54 points recorded in the previous session.
Similarly, the market capitalisation declined to close at N72.68 trillion as investors lost N107.69 billion, while the Month-to-Date and Year-to-Date returns moderated to +3.2% and +12.0%, respectively.
The total volume of trades declined by 22.7% to 721.75 million units, valued at N22.01 billion, and exchanged in 22,100 deals. ACCESSCORP was the most traded stock by volume at 92.70 million units, while ZENITHBANK was the most traded stock by value at N3.56 billion.
Sectoral performance was broadly negative, as the Banking (-4.0%), Oil & Gas (-0.9%) and Insurance (-.0.5%) indices declined while the Consumer Goods (+2.0%) index advanced. The Industrial Goods index remained unchanged.
As measured by market breadth, market sentiment was negative (0.5x), as 43 tickers lost relative to 20 gainers.
NNFM (-10.0%) and CILEASING (-9.7%) led the losers, while GUINEAINS (+10.0%) and ELLAHLAKES (+9.9%) recorded the most significant gains of the day.
NASD OTC exchange
Similar trend played out at the unlisted equities market as the NASD Securities Index closed bearish, losing 0.45% to close at 3,326.33 points compared with 3,341.22 points posted on Friday.
Trading analysis shows that a total of 479,638 units of equities valued at N21.75 were exchanged in 37 deals. The market recorded two losers with zero gainer.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 4bps to 27.0% following OMO sales from the CBN.
Proceedings in the Treasury bill secondary market were bullish, as the average yield contracted by 4bps to 20.6%.
Across the curve, the average yield contracted at the short (-4bps), mid (-6bps) and long (-3bps) segments, driven by the demand for the 87DTM (-5bps), 178DTM (-6bps) and 339DTM (-8bps) bills, respectively.
Meanwhile, the average yield expanded by 6bps to 26.0% in the OMO segment.
Elsewhere, the FGN bond secondary market traded on a bearish note, as the average yield expanded by 5bps to 18.5%.
Across the benchmark curve, the average yield expanded at the short (+1bp), mid (+1bp) and long (+10bps) segments, driven by selloffs in the FEB-2028 (+2bps), MAR-2035 (+1bp) and JULY-2045 (+79bps) bonds, respectively.
PTAD pays N8.6bn arrears of pension increment
Also, the Pension Transitional Arrangement Directorate has said that it has finalised the payment of another installment of pension arrears arising from the N32, 000 increment approved by President Bola Tinubu, in 2024.
The latest installment, which totals N8.6 billion, covers all 148,625 eligible Defined Benefit Scheme pensioners across the Police, civil service, parastatals, as well as the Customs, Immigrations and Prisons’ pension departments of the directorate, PTAD said in a statement.
It also said that the payment was in continuation of the Federal Government’s settlement of arrears accruing from the second pension increment of N32, 000 approved by the federal government in July 2024.
PTAD said it earlier settled the arrears of the first increment of 20/28% approved by the President, which took effect from January 2024.
The breakdown of the payment shows that the sum of N5.7 billion was paid to 59,342 eligible pensioners under Parastatals’ Pensions Department; N2.3 billion was paid to 71,084 eligible pensioners under the Civil Service Pension Department; N310 million paid to 9,579 pensioners under the Police Pension Department; and, N276 million paid to 8,620 pensioners under the Customs, Immigration and now Correctional Service pension department.
Announcing the payment, the Executive Secretary of PTAD, Tolulope Odunaiya, reiterated the commitment of the Federal Government towards the full settlement of the outstanding balance accruing from the increment.
The Executive Secretary further emphasised the unflinching determination of the Federal Government to proceed with its programmes aimed at improving the welfare of pensioners in line with President Tinubu’s Renewed Hope Agenda.