August 15, 2019/Cordros Report

EQUITIES

The Nigerian equities market sustained its bearish run, as the benchmark index declined by 0.11% –to 27,052.93 points, following sell-offs on DANGCEM. Consequently, the month-to-date and year-to-date losses worsened to – 2.36% and -13.90% respectively.

Similarly, the total volume of trades decreased by 22.32% to 217.22 million units, valued at NGN3.43 billion, and exchanged in 4,222 deals. GUARANTY was the most traded stock by volume at 42.50 million units, while MTNN was the most traded by value at NGN1.44billion.

Losses were evident across all sectors, save for the Oil & Gas indices that closed flat, as the Consumer Goods (-1.13%), Banking (-0.86%), Insurance (-0.85%) and Industrial Goods (-0.18%) indices all closed in the red. Market sentiment, as measured by market breadth, was negative (0.39x) as 23 tickers recorded losses relative to 9 gainers. On the decliners list, ETI (-10.00%) and UNILEVER (-10.00%) recorded the largest losses, while CCNN (+9.43%) and UNITYBNK (+7.81%) led the gainers’ list.

CURRENCY

The naira traded flat against the US dollar at NGN360.00/USD in the parallel market, while it depreciated by 0.07% to NGN363.46/USD at the I&E FX window.

MONEY MARKET & FIXED INCOME

The overnight lending rate declined by 200bps to 12.64%, even as CBN’s OMO mop up outweighed maturities of NGN49.04 billion.  At the auction today, the CBN sold a total of NGN88.66 billion bills – NGN0.69 billion of the 175DTM, and NGN87.97 billion of the 364DTM — at respective stop rates of 11.80% and 12.88% (previously 12.00%) respectively. However, no sale was made at the short tenue.
 
 Activities in the Treasury bills market were bearish, as the average yield widened by 16bps to 13.40%. Investors sell-offs on 168DTM (+147bps) and 245DTM (+53bps) bills led to yield expansions at the mid (+44bps) and long (+36bps) tenor segments of the yield curve respectively. Conversely, Demand for 35DTM (+117bps) bill led to yield contraction at the short (+5bps) end of the curve.  

Trading in the bond market were bearish as the average yield expanded by 8bps to close at 14.27%. Sell-offs on the MAR-2024 (+45bps) and APR-2034 (+3bps) instruments led to yield expansions at the short (+23bps) and long (+1bp) tenor segments. However, yield was flat at the mid segment.

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