January 29, 2020/Cordros Report
EQUITIES
The Nigerian equity market sustained its bearish stance as the NSE All Share Index declined by 0.91% to 29,110.90 – the biggest decline since Jan 14, 2019. The benign performance was driven by selloffs in MTNN (-4.00%), GUARANTY (-2.90%), and ACCESS (-2.00%). Consequently, the Year-to-Date return moderated to 8.45%.
The total volume of trades declined by 3.26% to 242.76 million units, valued at NGN4.59 billion and exchanged in 3,556 deals. ZENITHBANK was the most traded stock by volume at 46.57 million units while MTNN was the most traded stock by value at NGN1.28 billion.
Analysing by sector, gains in the Consumer Goods (+0.39%) and Oil & Gas (+0.36%) indices were not enough to offset losses across the Insurance (-2.79%), Banking (-1.26%), and Industrial Goods (-0.18%) indices.
Market sentiment, as measured by market breadth, was negative (0.6x), as 18 tickers recorded declines while 10 tickers recorded gains. BOCGAS (-9.09%) and NEM (-8.33%) recorded the largest declines, while LASACO (+7.69%) and AIICO (+6.33%) were the top gainers for the day.
CURRENCY
The naira weakened against the US dollar by 0.28% to NGN361.00/USD in the parallel market, while it strengthened by 0.13% to NGN363.51/USD at the I&E FX window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 492bps to 14.17%, following a decline in system liquidity.
Activities in the NTB market were mixed with a bullish tilt, as average yield pared marginally by 2bps to 3.54%. Yields contracted marginally at the long (-3bps) segment following interest in the 260DTM (-24bps), while the short and mid segment remained unchanged. Elsewhere, average yield contracted by 13bps to close at 13.31% at the OMO secondary market. At today’s NTB primary auction, the CBN fully allotted NGN229.63 billion worth of bills – NGN49.84billion of the 91- day, NGN54.59 billion of the 182-day and NGN 125.20 billion of the 364-day – at respective stop rates of 3.50% (previously 2.95%), 4.50% (previously 3.95%), and 6.50% (previously 5.09%).
The treasury bonds secondary market remained bullish, as the average yield across all instruments dipped further by 49bps to 9.66%. Yields contracted across the short (-82bps), mid (-31bps) and long (-31bps) segments of the curve, following buying interest in the APR-2023 (-93bps), JAN-2026 (-61bps) and JUL-2034 (-37bps) bonds, respectively.
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