June 25, 2019/Cordros Report
EQUITIES
The Nigerian equities market sustained its losing streak as the benchmark index dipped by 0.47% to 26,668.68 points, following sell-offs across major counters.
Thus, the Month-to-Date and Year-to-Date losses increased to 4.51% and 5.61%, respectively.
On sectorial breakdown, gains in the Industrial Goods (+0.94%) index was masked by losses in the Oil & Gas (-2.31%), Insurance (-2.06%), Banking (-0.93%) and Consumer Goods (-0.08%) indices. Notable stocks include; CCNN (+9.47%), SEPLAT (-2.94%), NEM (-8.37%), GUARANTY (-1.61%), and NB (-0.85%), respectively.
Market breadth was negative with 22 losers and 14 gainers, led by FO (-9.38%) and SOVRENINS (+9.52%) shares respectively. Total volume trades declined by 55.83% to 253.34 million units, valued at NGN4.12 billion and executed in 3836 deals.
Our outlook for equities in the short to medium term remains conservative, amidst absence of a positive catalyst.
CURRENCY
The naira was flat against the dollar at NGN362 in the parallel market, while it depreciated by 0.11% to NGN360.77 in the I&E FX window. Total turnover in the IEW decreased by 62.7% to USD108.79 million, with trades consummated within the NGN355.00- NGN361.50/USD band.
MONEY MARKET & FIXED INCOME
The overnight lending rate moderated by 100 bps to 8.21%, in the absence of any significant outflows.
Activities in the treasury bills market were bullish, as average yield dipped by 11 bps to 12.22%. Demand was evident across the mid (-21 bps) and long (-12 bps) segments, with respective yields on 128DTM (-49bps) and 282DTM (-43 bps) bills contracting. Conversely, a sell-off in the 79DTM (+25 bps) led to yield expansion at the short (+5 bps) end of the curve.
The bears dominated in the bond market, as average yield widened by 9 bps to 14.17%. Sell pressure was spread across the short (+20 bps) and mid (+1 bps) segments, with respective yields on JUL-2021 (+63 bps), JAN-2026 (+2 bps) bonds expanding. Yield at the long end of the curve was flat.
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