December 12, 2019/Cordros Report
Equities
Nigeria’s equities market recorded the second consecutive trading gains this week, as the benchmark index advanced by 0.51% to 26,569.80 points, driven gains recorded in GUARANTY and ZENITHBANK stocks. Consequently, the Month-to-Date and Year-to-Date losses moderated to -1.60% and to -15.46%, respectively.
Meanwhile, the total volume of trades dipped by 77.38% to 319.69 million units, valued at NGN3.07 billion and exchanged in 2,503 deals. UNIONDAC was the most traded stock by volume at 29.33 million units while DANGCEM was the most traded stock by value at NGN1.73 million respectively.
All sector indices closed in green, with the exception of the Industrial Goods (-0.81%) index, as the Consumer Goods (+1.19%), Banking (+1.10%), Insurance (+0.34%) and Oil & Gas (+0.15%) indices recorded gains.
Market sentiment, measured by market breadth, was positive (1.2x), as 16 tickers recorded gains relative to 13 losers. PRESCO (+9.51%) and CADBURY (+9.39%) recorded the largest gains, while NEIMETH (-9.59%) and CUTIX (-9.40%) topped the laggards’ list.
Currency
In today’s trading, the naira appreciated by 0.04% against the US dollar to NGN363.35/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 pared marginally by 8bps to 2.92%, as inflows from OMO maturities (NGN312.12 billion) boasted system liquidity.
Activities in the Treasury bills market were bullish, as the average yield dipped by 21bps to 6.31%. Yields contracted at the short (-38bps) and mid (-36bp) segments of curve, following buying interest in the 77DTM (-68bps) and 182DTM (-78bps) instruments, respectively. On the flip side, yield at the long end was flat. Elsewhere, average yield pared by 18bps to close at 13.12% at the OMO bills secondary market.
Similarly, trading in the Treasury bonds market was bullish, as the average yield pared by 36bps to 10.72%. Buying interests in the JUL-2021 (-98bps), JAN-2026 (-25bps) and MAR-2036 (-70bps) bonds, led to respective yields contraction across the short (- 63bps), mid (-8bps) and long (-31bps) segments of the curve.
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