September 9, 2019/Cordros Report
Equities
The Nigerian equities market kick-started the week on a negative note, as the benchmark index declined by 0.21% to 27,089.84 points. The market was on the verge of closing positive as at 2:15 pm, however, late sell-offs of NESTLE, ACCESS, and OANDO weighed-down the overall index.
The total volume of trades dipped by 6.67% to 290.49 million units, valued at NGN4.29 billion and exchanged in 2,900 deals. GUARANTY was the most traded stock by volume and value with 128.49 million units traded at an aggregate value of NGN3.80 billion.
Analyzing sector performances, losses across the Consumer Goods (-2.86%), Industrial (-0.56%), and Insurance (-0.32%) sectors outweighed gains in the Oil &Gas (+2.72%) and Banking (+0.5%) indices.
Market sentiment, as measured by market breadth, was positive (1.07x) as 15 tickers recorded gains relative to 14 losers. CUTIX (-6.67%) and NPFMCRFBK (6.45%) topped the decliners list, while JOHNHOLT (8.93%) and SEPLAT (7.12%) recorded the largest gains.
Currency
The naira traded flat against the US dollar at NGN360.00/USD in the parallel market, while it depreciated by 0.03% to NGN362.18/USD at the I&E FX window.
Money market & fixed income
The overnight lending rate expanded by 445bps to 8.21%, as system liquidity declined following today’s OMO auction. At the auction, the CBN sold instruments worth NGN183.64billion – 80DTM bill (NGN0.15 billion), 185DTM bill (NGN2.13billion), and 364DTM bill (NGN181.36 billion) – at respective stop rates of 11.59%, 11.79%, and 13.50%.
Trading in the Treasury bills market was bullish, as the average yield declined by 12bps to 13.20%. Demand for the 70DTM (-80bps), 112DTM (-64bps), and 238DTM (-103bps) bills led to yield contractions at the short (-14bps), mid (-17bps) and long (-7bps) segments, respectively.
However, trading in the Treasury bonds market was mixed, albeit with a bullish tilt, as the average yield declined by 4bps to 14.23%. Demand for the FEB-2020 (-55bps) and APR-2049 (-2bps) bonds led to yield contractions at the short (-11bps) and long (-2bps) segments. Conversely, sell-offs of the FEB-2028 (+3 bps) bond led to a yield expansion at the mid (+2bps) segment.
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