December 11, 2019/Cordros Report
The domestic equities market recorded the first gain this week, as the benchmark index expanded by 0.19% to 26,434 points, driven gains recorded in MTNN and ACCESS stocks. Consequently, the Month-to-Date and Year-to-Date losses moderated to -2.10% and to -15.90% respectively.
Meanwhile, the total volume of trades dipped by 8.18% to 180.23 million units, valued at NGN2.04 billion and exchanged in 2,951 deals. UBA was the most traded stock by volume at 29.33 million units while DANGCEM was the most traded stock by value at NGN697.98 million respectively.
Mixed performances were recorded across all sectors, as the Oil & Gas (+0.46%) and Consumer Goods (+0.12) indices advanced, while the Insurance (-0.67%) and Banking (-0.39%) indices declined; the Industrial Goods was flat.
Market sentiment, as measured by market breadth, was negative (0.9x), as 13 tickers recorded declines while 12 tickers recorded gains. UNIONDAC (-8.33%) and CHAMS (-8.11%) recorded the largest declines, while CILEASING (+9.26%) and COURTVILLE (+8.70%) topped the gainers’ list.
Currency
In today’s trading, the naira appreciated by 0.02% against the US dollar to NGN363.48/USD at the I&E FX window but was flat at NGN360.00/USD at the parallel market.
Money market and fixed income
Overnight lending rate remained low at 3.0%, on the back of excess liquidity, which is estimated at NGN430.40 billion.
Activities in the Treasury bills market sustained its bullish trend, as the average yield dipped by 48bps to 6.51%. Yields contracted at the short (-40bps), mid (-0.66bps) and long (-41bps) segments of the curve, following buying interests in the 78DTM (-131bps), 113DTM (-113bps) and 295DTM (-72bps) instruments, respectively. Elsewhere, average yield pared by 21bps to close at 13.30% at the OMO bills secondary market. In today’s primary market auction, the CBN fully allotted instruments worth NGN45.00 billion –- 91DTM (NGN1.80 billion), 182DTM (NGN4.50 billion), and 364DTM (NGN38.70 billion) –- at respective stop rate of 5.00% (previously 6.49%), 6.19% (previously 7.23%) and 6.88% (previously 8.37%).
Similarly, trading in the Treasury bonds market was bullish, as the average yield pared by 4bps to 11.08%. Yields contracted across the short (-12bps) and mid (-3bps) segments of the curve, following buying interests in the FEB-2020 (-43bps), JAN-2026 (-9bps) bonds, respectively. Conversely, yield expanded at the long (+3bps) end of the curve, on the account of sell-offs on JUL-2034 (+17bps) bonds.
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