January 20, 2020/Cordros Report
Equities
Bullish sentiments persist in the domestic equities market, as the NSE All-Share Index advanced by 0.31% to 29,710.56 points, driven by investors’ positioning in market bellwethers – MTNN (+1.34%), GUARANTY (+1.49%) and ZENITHBANK (+2.02%). Accordingly, Year-to-Date return strengthened to 10.69% while the Market Cap gained NGN47.41 billion to close at N15.30 trillion.
Meanwhile, the total volume of trades declined by 17.86% to 266.95 million units, valued at NGN4.18 billion and exchanged in 5,052 deals. ACCESS was the most traded stock by volume at 37.84 million units while GUARANTY was the most traded stock by value at NGN1.15 billion respectively.
On Sector indices, gains were evident across the board, with the exception of the Consumer Goods (-3.14%) index, as the Industrial Goods (+1.95%), Banking (+1.16%), Insurance (+1.10%) and the Oil & Gas (+0.34%) indices all advanced.
Market sentiment, as measured by market breadth, was positive (2.0x), as 22 tickers recorded gains while 11 tickers recorded declines. LAWUNION (+10.00%) and TOTAL (+9.35%) topped the gainer’s list, while NCR (-9.88%) and NESTLE (-6.12%) recorded the largest declines.
Currency
The naira traded flat against the US dollar at NGN362.00/USD in the parallel market, while it declined by -0.15% to NGN362.38/USD at the I&E FX window.
Money market & fixed income
The overnight lending rate eased by 36bps to 3.50%, as the system liquidity – estimated at NGN405.95 million – was sufficient to offset the funding for CBN’s wholesale, Invisibles and SMEs FX auctions.
Trading in the Treasury bills secondary market was quiet, as yields across all segments were unchanged. Elsewhere, investors’ interests in the mid and long-dated bills, led to a marginal yield increase of -2bps at the OMO market.
Trading in the Treasury bonds market was bullish, as the average yield dipped by 1bp to 10.25%. Yields contracted across the short (-1bps) and mid (-3bps) segment of the curve following investors’ buying interest in the JUL-2021 (-15bps) and MAR-2027 (-14bps) bonds, respectively; the long end of the curve was flat.
Click here to read full PDF copy of report
