April 29, 2020/Cordros Report
EQUITIES
At the close of today’s trading session, the domestic bourse sustained its positive trend, following demand for MTNN (+2.4%) and FBNH (+3.4%) stocks. Pointedly, the All-Share Index increased by 0.6% to 22,868.40 points. Consequently, the Month-to-date gain increased to 7.4%, as Year-to-Date losses moderated to -14.8%.
The total volume of trades increased by 4.1% to 277.43 million units, valued at NGN2.55 billion and exchanged in 4,464 deals. FBNH was the most traded stock by volume at 56.62 million units while GUARANTY was the most traded stock by value at NGN470.41 million.
Analysing by sectors, performance was positive as all sectors gained, save for the Insurance (-0.2%) index. The Oil and Gas (+0.4%) index led the gains, followed by the Consumer Goods (+0.4%), Industrial Goods (-0.2%) and Banking (+2.8%) indices, respectively.
Market sentiment, as measured by market breadth, was positive (1.2x), as 14 tickers gained, relative to 12 losers. COURTVILLE (+10.0%) and VITAFOAM (+10.0%) were the top gainers of the day, while ETERNA (-9.6%) and UPL (-7.6%) were the top losers of the day.
CURRENCY
The naira was flat at the parallel market at NGN460.00/USD, while it weakened by 0.1% to NGN386.45/USD at the I&E FX window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 868bps to 3.4% as system liquidity became buoyant.
Trading in the NTB secondary market was mixed, albeit with a bullish bias, as average yield across instruments pared by 1bp to 2.7%. Across the curve, yields contracted mildly at the mid (-1bp) and long (-1bp) segments, following slight demand for the 183DTM (-5bps) and 197DTM (-3bps) instruments respectively; the short end was flat. Conversely, average yield expanded by 21bps to 10.0% in the OMO secondary market. At today’s NTB PMA, the CBN fully allotted NGN131.53 billion worth of bills – NGN5.85 billion of the 91-day, NGN3.50 billion of the 182-day and NGN49.14 billion of the 364-day – at respective stop rates of 1.85% (previously 1.93%), 2.50% (previously 2.74%), and 3.84% (previously 4.00%).
Trading in the Treasury bond secondary market was mixed, albeit with a bearish tilt, as average yield expanded by 3bps to 10.3%. Across the curve, yields expanded at the short (+8bps) and mid (+1bp) segments, following demand for the MAR-2024 (+50bps) and MAR-2027 (+4bps) respectively; the long end was flat.