August 29, 2019/Cordros Report

EQUITIES
 
The Nigerian equities market reverted the gains in previous trading session, as the benchmark index declined by 0.66% to 27,425.57points, following selloff on DANGCEM and MTNN shares. Thus, the Month-to-Date and Year-to-Date losses dipped further to -1.06% and -12.74%, respectively.
 
Total volume of trades decreased by 10.97% to 116.07 million units, valued at NGN1.65billion. ZENITHBANK was the most traded stock by volume at 19.01 million units, while DANGCEM was the most traded by value at NGN 353.67 mrillion.
 
Analysing sector performances, losses in Industrial Goods (-0.74%) and Consumer Goods (-0.19%) indices masked gains in Insurance (+1.83%), Oil & Gas (+0.10%) and Banking (+0.09%), respectively.
 
Market sentiment, as measured by market breadth, was positive (1.29x) as 18 tickers recorded gains relative to 14 losers. On the top gainers’ list, CONTINSURE (+9.97%) and AFRIPRUD (+8.57%) led the pack, while on the top losers’ list UACN (-9.00%) and FLOURMILL (-5.59%) recorded the largest declines.
 
CURRENCY
 
The naira traded flat against the US dollar at NGN360.00/USD in the parallel market, while it appreciated by 0.15% to NGN 362.61/USD at the I&E FX window.
 
MONEY MARKET & FIXED INCOME
 
The overnight lending rate contracted by 500 bps to 7.36% following inflows from matured OMO bills (NGN393.30 billion). At the auction today, the CBN sold a total of NGN48.05 billion bills – NGN1.00 billion of the 91DTM, NGN1.38 billion of 189DTM, and NGN45.67 billion of the 364DTM — at respective stop rates of 11.59% (previously: no sale), 11.79% (previously 11.80%) and 13.00% (previously 12.88%).
 
Activities in the Treasury bills market were bullish, as the average yield declined by 18bps to 13.90%. Investor demand for the DTM49(-157bps), 140DTM (-48bps)  and 273DTM (-149bps) bills, led to yield contraction across the short (-15bps), mid (-15bps) and long (-23bps) segments.  
 
Trading in the bond market was with a bullish tilt, as the average yield declined marginally by 2bps bps 14.16. Investors demand for JAN-2022 (-19bps) and JUL-2034 (-24bps) bond, led to yield contraction at the short (-2bps) and long (-6bps) segment of the curve. On the flip side, selloff on  FEB-2028 (+4bps) bonds led to yield expansion at the mid (+1bp) segments.

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