July 15, 2020/Cordros Report

EQUITIES

The Nigerian equities market recorded its first daily gain this week, following investors’ interest in AIRTELAFRI (+3.4%), GUARANTY (+0.9%) and ACCESS (+0.8%). The All-Share Index advanced by 0.1% to 24,130.26 points. Consequently, Month-to-Date and Year-to-Date losses increased to -1.4% and -10.1%, respectively.
 
The total volume of trade was flat at 208.21 million units, valued at NGN1.76 billion and exchanged in 3,648 deals. STERLNBANK was the most traded stock by volume at 77.19 million units while MTNN was the most traded stock by value at NGN296.09 million.
 
Across sector indices, the Consumer Goods (-1.4%) and Insurance (-0.9%) indices declined, while the Banking (+0.4%) and Industrial Goods (+0.01%) indices recorded gains. The Oil & Gas index was flat.
 
Market sentiment, as measured by market breadth, was negative (0.7x), as 15 tickers declined, relative to 10 gainers. JBERGER (-9.9%) and NB (-9.8%) were the top losers of the day, while CUTIX (+7.7%) and DANGSUGAR (+5.2%) recorded the largest gains.
 
CURRENCY
 
The naira weakened at the I&E window and parallel market by 0.1% and 1.1% to NGN386.50/USD and NGN470.00/USD, respectively.
 
MONEY MARKET & FIXED INCOME
 
The overnight lending rate contracted by 213bps to 10.8%, as system liquidity improved.
 
The NTB secondary market was mixed, as average yield pared by 1bp to 1.9%. Across the curve, yield contracted at the short (-2bps) end, following interest in the 78DTM (-7bps) instrument; yield was flat at the mid and long segments. Elsewhere, average yield expanded by 7bps to 5.7% at the OMO secondary market.
 
Trading in the Treasury bond secondary market was bullish, as average yield contracted by 4bps to 7.7%. Across the curve, yield contracted at the short (-6bps), mid (-1bp) and long (-6bps) segments, as investors demanded the JUL-2021 (-24bps), JUL-2030 (-6bps) and JUL-2034 (-18bps) bonds, respectively.

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