10 November 2016, Lagos – The Nigerian stock (equities) and fixed income markets plunged on Wednesday following the outcome of the elections conduction in the United States, among other indices.
The NSE capitalisation also plummeted by N65bn from N9.075tn to N9.01tn.
On the global front, European and Asian markets tumbled as the US elections drew to a close.
Also, the US stocks opened lower after Donald Trump was announced President-elect.
The financial services sector was the main drag in Wednesday’s session on the NSE, closing 3.02 per cent lower, following declines in Access Bank Plc, Guaranty Trust Bank Plc and Zenith Bank Plc by 4.63 per cent, 3.50 per cent and 2.80 per cent, respectively.
The consumer goods sector also closed in red amid mixed performances across PZ Cussons Nigeria Plc, which depreciated by 8.39 per cent; Flour Mills Nigeria Plc, which depreciated by five per cent; Dangote Sugar Refinery Plc, which gained 2.94 per cent and Guinness Nigeria Plc, which appreciated by 1.69 per cent.
The industrial and oil/gas sectors, however, posted mild gains on the back of advances in Cap Plc and Oando Plc by 4.06 per cent and 0.95 per cent, respectively.
Market breadth remained negative with 11 gainers and 30 losers.
On what would shape the next trading session, analysts at Vetiva Capital Management Plc, said, “We believe the ASI is headed for another negative close in the session ahead amidst the overall weak investor appetite.”
Meanwhile, the interbank call rate advanced 550 basis points to 19.17 per cent despite relatively unchanged system liquidity. At the foreign exchange interbank market, the naira depreciated N2.49 against the dollar to close at N307.76 at the spot market. The one year forward rate increased N6.36 to close at N355.
On the day of announcement of the President-elect of the US, sentiment turned negative in the Treasury bills market as yields climbed 40 basis points on the average.
Sell pressure was weighted on the short-mid dated maturities with yields on the 29 day-to-maturity, 120DTM and 197DTM bills rising to 14.49 per cent, 18.76 per cent, and 20.46 per cent, respectively.
Similarly, bearish sentiment emerged in the bond space with almost all benchmark bonds advancing during Wednesday’s session. Notably, yields on the 12.15 per cent FGN July 2034 and 12.40 per cent FGN March 2036 bonds advanced 4bps each to close at 15.18 per cent and 15.51 per cent, respectively.