September 4, 2019/Cordros Update

EQUITIES
 
The Nigerian equities market recorded its first loss of the week, as the benchmark index declined by 0.97% to 27,319.64 points. Thus, the Month-to-Date and Year-to-Date losses worsened to 0.75% and 13.08% respectively.
 
The total volume of trades decreased by 14.94% to 250.45 million units, valued at NGN3.19 billion and exchanged in 3,219.00 deals. ACCESS was the most traded stock by volume at 81.85 million units, while WAPCO was the most traded by value at NGN587.39 billion.
 
On sectoral performances, the Industrial index was the sole gainer, rising by 0.29%. Conversely, the Consumer Goods (-2.19%), Insurance (-1.02%), Oil & Gas (-0.79%) and Banking (-0.74%) indices all closed in the red.
 
Market sentiment, as measured by market breadth, was negative (0.72x) as 18 tickers recorded losses relative to 13 gainers. Assessing the gainers and decliners lists, we highlight that GUINNESS (-9.90%) and IKEJAHOTEL (-9.79%) decline the most during today’s trading session, while UACN (+9.89%) and UAC-PROP (+9.76%) recorded the largest gains.
 
CURRENCY
 
The naira traded flat against the US dollar at NGN360.00/USD in the parallel market, while it appreciated by 0.13% to NGN362.40/USD at the I&E FX window.

MONEY MARKET & FIXED INCOME 
 
The overnight lending rate declined by 57bps to 9.50%, given the still buoyant level of system liquidity.
 
Activities in the Treasury bills market were bullish, as the average yield declined by 13bps to 13.99%. Investors demand for the 8DTM (-112bps), 120DTM (-32bps), and 228DTM (-101bps) bills led to yield contractions at the short (-26bps), mid (-16bps) and long (-1bps) segments, respectively.
 
Trading in the bond market was mixed, albeit with a bullish tilt, as average yield declined marginally (1bp-) to 14.32%. Investors demand for the FEB-2028 (-17bps) bond led to yield contraction at the mid (-12bps) segment. Conversely, sell-offs of the FEB-2020 (+22 bps) led to yield expansion at the short (+8bps).  Yield at the long end of the curve was unchanged.

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