October 28, 2019/Cordros Report
Equities
Following the modest earning performances from the CCNN and WAPCO, Nigeria’s equities market halted its losing streak, advancing by 0.14% to 26,384.45 points. Thus, the months-to-date and Year-to-Date losses moderated to -4.51% and -16.05% respectively.
Also, the total volume traded increased by 30.95% to 485.89 million valued at NGN1.08 billion and exchanged in 3,861 deals. VERITASKAP was the most traded stock by volume at 346.7 million units while ZENITHBANK was the most traded by value at NGN374 million.
Sector performances were mixed, as the Industrial Goods (+1.58%) and Consumer Goods (+0.10%) indices expanded, while the Insurance (-0.46%), Banking (-0.02%), and Oil & Gas (-0.02%) indices declined.
Market sentiment, as measured by market breadth, was positive at (1.71x) as 12 tickers recorded gains relative to 7 losers. COURTVILLE (+9.52%) and TRIPPLEG (+8.47%) recorded the largest gains, while LIVESTOCK (-8.00%) and UACN (-7.69%) recorded the largest declines.
Currency
The naira traded flat against theUS dollar at NGN360.00/USD in the parallel market, while it appreciated by 0.01% to NGN362.09/USD at the I&E FX window.
Money market & fixed income
The overnight lending rate widened by 43bps to 4.79%, as system liquidity became strained ahead of the upcoming CBN FX auction across the Wholesale, Invisibles & SME segments.
Activities in the Treasury bills market were bullish, as the average yield contracted by 3bps to 12.74%. Yields declined across the mid (-2bps) and the long (-9bps) segments of the curve, following buying interests in the 112DTM (-9bps) and 311DTM (-31bps) instruments, respectively. Conversely, the average yield expanded at the short (+2bps) segments of the curve, following investors’ sell-offs of the 31DTM (+66bps) bills.
Trading in the Treasury bonds market was bullish, as the average yield declined by 20bp to 13.01%. Yields contracted across the short (-20bps), mid (-21bps), and long (-19bps) segments of the curve, following investors’ buying interest in the APR-2023 (-51bps), MAR-2027 (-36bps) and JUL-2034 (-32bps) bonds respectively.
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