December 10, 2019/Cordros Report
The bears continued to dominate the domestic equities market, as the benchmark index dipped 1.11% to 26,384.21 points, following sell-offs on DANGCEM, GUARANTY, and NESTLE stocks. Consequently, the Month-to-Date and the Year-to-Date losses worsened to -2.29% and -16.06%, respectively.
Meanwhile, the total volume of trades increased by 1.87% to 196.29 million units, valued at NGN3.55 billion and exchanged in 3,153 deals. GUARANTY was the most traded stock by volume at 24.22 million units and value at NGN 1.43 billion respectively.
All sector indices closed negative, as the Consumer Goods (-1.99%), Banking (-0.92%), Industrial Goods (-0.56%) and Insurance (-0.91%); the Oil and Gas index closed flat.
Market sentiment, as measured by market breadth, was negative (0.4x), as 22 tickers recorded declines while 8 tickers recorded gains. DAARCOMM (-10.00%) and ARBICO (-9.95%) recorded the largest declines, while ROYALEX (+7.41%) and FCMB (+3.95%) topped the gainer’s list.
Currency
In today’s trading, the naira depreciated by 0.06% against the US dollar to NGN363.56/USD at the I&E FX window but was flat at NGN360.00/USD at the parallel market.
Money market and fixed income
The overnight lending rate expanded marginally by 4bps to 2.93%, amidst a tight system, which is estimated at NGN453.89 million
Activities in the Treasury bills market were bullish, as the average yield dipped by 5bps to 6.99%. Yields contracted at the long (-20bps) end of the curve, following buying an interest in the 310DTM (-196bps) instrument. On the flip, yield expanded at the mid (+21bps) segment of the curve, following sell-offs on 128DTM (+62bps) instrument, while the short end of the curve was flat. Elsewhere, yields on OMO bills expanded by 46bp to 13.51%.
Similarly, trading in the Treasury bonds market was bullish, as the average yield pared by 24bps to 11.12%. Yields contracted across the short (-12bps) mid (-48bps) and long (- 18bps) segments of the curve, following buying interests in the JUL-2021 (-25bps), FEB-2028 (-52bps) and APR-2049 (-28bps) bonds, respectively.
Click here to read full PDF copy of report
