June 3, 2020/Cordros Report

EQUITIES

Sentiments remained positive in the domestic equities market, as investors’ interest in MTNN (+1.3%) buoyed the sturdy performance, despite the profit taking witnessed across ACCESS (-3.5%) and DANGCEM (-0.4%). Precisely, the All-Share index advanced by 0.1% to 25,407.96 points. Consequently, Month-to-Date return increased to 0.6%, as Year-to-Date losses moderated to -5.3%.

The total volume of trades decreased by 6.5% to 353.33 million units, valued at NGN7.04 billion and exchanged in 4,659 deals. FBNH was the most traded stock by volume at 50.29 million units, while DANGCEM was the most traded stock by value at NGN2.08 billion.

Sectoral performance failed to mirror market performance, as all sector indices closed negative, save for the Insurance (+0.1%) index that gained, and the Oil and Gas index that traded flat. The Banking (-0.6%), Consumer Goods (-0.4%) and Industrial goods (-0.2%) indices all declined.

Market sentiment, as measured by market breadth, was negative (0.9x), as 17 tickers gained, relative to 19 losers. PZ (-9.4%) and CILEASING (-9.4%) were the top losers of the day, while NEIMETH (+9.7%) and PRESCO (+9.0%) recorded the largest gains for the day.

CURRENCY

The naira weakened by 0.2% to NGN386.33/USD at the I&E window, while it was flat at NGN445.00/USD at the parallel market.

MONEY MARKET & FIXED INCOME

The overnight lending rate contracted by 5bps to 2.7%, as system liquidity remains healthy.

Trading in the NTB secondary market was bearish, as average yield expanded by 121bps to 3.3%. Across the curve, yield at the short (+164bps) and mid (+139bps) segments expanded, as market players sold off the 85DTM (+335bps) and 99DTM (+280bps) instruments, respectively; the long end was flat. Elsewhere, average yield contracted by 26bps to 5.4% in the OMO secondary market.

Trading was mixed, with bullish bias, in the Treasury bond secondary market, as average yield pared by 2bps to 10.3%. Across the benchmark curve, yield at the short (-5bps) end contracted due to demand for the JUL-2021 (-17bps) bond, while they expanded slightly at the long (+1bp) end, due to sell-off of the APR-2049 (+6bps) bond; the mid segment was flat.

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