July 24, 2019/Cordros Report
EQUITIES
The Nigerian equities market reversed performance today, as a portion of the gain from the previous day’s trading session was clawed back after the benchmark index declined by 0.20% to close at 28,088.74 points. Consequently, the Month-to-Date and Year-to-Date returns worsened to -6.27% and -10.63% respectively.
However, the total volume of trades increased by 16.72% to 157.79 million units, valued at NGN2.52 billion, and exchanged in 3,253 deals. GUARANTY was the most traded stock by volume and value at 33.59 million units and NGN 971.44 billion respectively.
Sector performances were mixed as the Oil & Gas (+4.51%), Consumer Goods (+0.34%) and Insurance (+0.12%) indices all closed positive, while the Industrial Goods (-1.20%) and Banking (-0.20%) indices closed negative. Market sentiment, as measured by market breadth, was negative (0.94x) as 16 tickers recorded losses relative to 15 gainers. On the decliners list, JAPAULOIL (-10.00%) and BOCGAS (-9.98%) recorded the largest losses, while UNITYBNK (+9.38%) and PRESTIGE (+6.25%) led the gainers’ list.
Our outlook for equities in the short to medium term remains conservative, in the absence of any catalysts to drive positive market returns.
CURRENCY
In today’s trading, the naira traded flat against the US dollar at NGN361.62/USD and NGN360.00/USD respectively at the I&E FX window and in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate declined by 143bps to 16.43%, amidst buoyant system liquidity.
Activities in the Treasury bills market were bearish as the average yield widened by 22 bps to 10.84%. Sell pressures on the 57DTM (+54bps), 120DTM (+135bps) and 204DTM (+38bps) instruments led to the yield expansions at the short (+14 bps), mid (+44bps) and long (+11bps) tenor segments of the curve.
Similarly, activities in the Treasury bond market mirrored the Treasury bills market, as the average yield expanded by 8bps to close at 13.35%. Selloffs on the JUL-2021 (+26bps) and FEB-2028 (+15bps) instruments led to yield expansions at the short (+12bp) and mid (+9bp) tenor segments of the curve. The average yield closed flat at the long end of the curve. As at the time of writing, the result of today’s FGN bond auction was not yet available.
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