July 30, 2019/Cordros Report
EQUITIES
The Nigerian equities market recorded a loss in today’s trading, clawing back the entire gain from the previous trading session of 0.11%, as sentiments once again turned negative. Consequently, the benchmark index dipped by 0.46% to 27,820.57 points, while the Month-to-Date and Year-to-Date losses worsened to -7.16% and -11.05% respectively.
However, the total volume of trades increased by 66.70% to 155.21 million units, valued at NGN2.23 billion, and exchanged in 3,192 deals. GUARANTY was the most traded stock by volume and value at 22.27 million units and NGN640.11 billion respectively.
Losses were recorded across most sectors save for the Industrial Goods (+0.57%) and Insurance (+0.02%) sectors, while the Consumer Goods (-2.07%), Banking (-0.72%) and Oil &Gas (-0.16%) indices all closed negative. Market sentiment, as measured by market breadth, was negative (0.55x) as 20 tickers recorded losses relative to 15 gainers. On the laggards list, JAPAULOIL (-8.70%) and NB (-8.33%) recorded the largest declines, while MBENEFIT (+10.00%) and IKEJAHOTEL (+8.96%) recorded the largest gains.
Amidst mixed corporate earnings, our outlook for equities in the short to medium term remains conservative.
CURRENCY
The naira traded flat against the US dollar at NGN360.00/US$ in the parallel market, while it depreciated by 0.12% to NGN362.39/US$ at the I&E FX window.
MONEY MARKET AND FIXED INCOME
The overnight lending (OVN) rate declined by 907bps to 5.21% on the back of buoyant system liquidity
Activities in the Treasury bills market were bullish, as the average yield declined by 15 bps to 11.05%. Investors interest in 72DTM (-51bps), 93DTM (-75bps) and 317DTM (-83bps) bills led to yield contractions across the short (-12bps), mid (-9bps) and long (23bps) tenor segments of the yield curve respectively.
Similarly, trading at the Treasury bonds market was bullish, as the average yield dipped by 15bps to 13.35%. Demand for the JUL-2021 (-64bps), FEB-2028 (-23bps) and MAR-2036 (-21bps) bonds, led to yield contractions at the short (-23bps) and mid (-13bps) and long (-9bps) tenor segments of the curve.
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