September 12, 2019/Cordros Report
The Nigerian equities market recorded it’s second consecutive gain this week, as the benchmark index widened by 1.01% to 27,426.64 points – the largest single-day gain since August 22nd –, following investor interest in NESTLE, GUARANTY and ZENITHBANK. Thus, the Month-to-Date and Year-to-Date losses moderated to 0.36% and 12.74% respectively.
The total volume of trades decreased by 45.4% to 115.42 million units, valued at NGN854.29 million and exchanged 2,816 deals. ACCESS was the most traded stock by volume at 17.01 million units, while GUARANTY was the most traded by value at NGN198.76 million.
Gains were broad based across the sectors, as the Consumer Goods (+3.74%), Banking (1.70%), Industrial Goods (+1.13), Insurance (+0.56%) and the Oil & Gas (0.49%) indices, closed positve.
Market sentiment, as measured by market breadth, was positive (3.14x) as 22 tickers recorded gains relative to 7 losers. On the gainers’ list, AIICO (+9.84%) and FO (+9.64%) recorded the largest gains, while JAIZBANK (-5.00%) and NPFMCRFBK (-4.31%) 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 0.01% to NGN 363.95/USD at the I&E FX window.
Money market & fixed income
The overnight lending rate declined by 721 bps to 12.29%, as system liquidity expanded following inflows from matured OMO bills (NGN347.61 billion). Also, the CBN also held an OMO auction today, selling a total ofNGN344.38 billion – 91DTM bill (NGN85.41 billion), 182DTM bill (NGN8.97 billion), and 364DTM bill (NGN250.00 billion) – in bills at respective stop rates of 11.59% (same as previous auction), 11.79% (same as previous auction), and 13.50% (same as previous auction).
Activities in the Treasury bills market were bearish, as the average yield widened by 6bps to 13.33%. Sell-offs of the 21DTM (+89bps), 40DTM (+126bps) and 196DTM (+86bps) bills, led to yield expansions at the short (+3bps), mid (+6bps) and long (+10bps) segments, respectively.
Trading in the Treasury bonds market was mixed, albeit with a bearish tilt, as average yield expanded marginally by 1bp to 14.28%. Sell-offs of the JAN-2026 (+7bps) and APR-2049 (+9bps) bonds led to yield expansions at the mid (+5bps) and long (+7bps) segments respectively. Conversely, demand for the JUL-2021 (-12bps) led to a marginal yield contraction at the short (-1bp) segment of the curve.
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