Investors in the equity market experienced a significant setback, losing approximately N481 billion as the market continued to exhibit a bearish trend characterized by sell-offs and diminishing interests.
During the primary market auction on Wednesday, Nigerian investors turned their attention to Treasury Bills, leading to a surge in the yield on the one-year Nigerian Treasury Bill, reaching 19 per cent.
The auction results revealed a strong demand, with investors offering N1.87 trillion for the N600 billion on offer. However, only N908.75 billion was allotted, with stop rates of 19 per cent.
Notably, Nigeria sold a record N1.8 trillion worth of treasury bills at the auction, nearly double the N1 trillion initially offered.
Tunde Amolegbe, the Managing Director of Arthur Steven Asset Management, attributed this high demand to investors’ confidence in the current government and its reform initiatives.
Shedding light on the investors’ preferences, Amolegbe stated, “Firstly, the investors are seeking higher rates for funding due to CBN signaling further tightening owing to accelerating inflation and other factors. Secondly, interest seems skewed towards the longer end of the curve, which is an indication of confidence in the government and its reforms.”
Despite these developments, the All-Share Index and market capitalization recorded a decline of 0.86 per cent, closing at 101,227.66 points and N55.39 trillion, respectively.
However, the volume of traded units saw a notable increase of 39.91 per cent, totaling 478.38 million units valued at N7.17 billion, representing an 11.97 per cent surge compared to the previous trading day. The number of deals also escalated to 10,957 from 9,665.
Reflecting the subdued investor sentiment, the market saw only seven gainers in contrast to 54 losers, with Meyer Plc, Juli Plc, and Tantalizer among the rare gainers.
Conversely, Nascon Allied Industries, Unity Bank, and Consolidated Hallmark Plc emerged as the top losers during this period.
Transcorp Plc, Zenith Bank, and United Bank for Africa stood out as the volume and value drivers influencing the day’s market trend.