July 20, 2020/Cordros Report
EQUITIES
Trading in the Nigerian equities market resumed on a negative note, following losses in ACCESS (-1.6%), ZENITHBANK (-0.6%) and PRESCO (-4.0%) stocks. Thus, the All-Share Index declined by 0.1% to 24,269.58 points. Accordingly, Month-to-Date and Year-to-Date losses increased to -0.9% and -9.6%, respectively.
The total volume of trade increased by 90.1% to 305.10 million units, valued at NGN2.10 billion and exchanged in 3,258 deals. SOVERENINS was the most traded stock by volume at 75.56 million units while GUARANTY was the most traded stock by value at NGN795.13 million.
Across sectors, the Insurance (+0.4%) and Oil & Gas (+0.3%) indices gained, while the Banking (-0.5%) and Industrial Goods (-0.01%) indices recorded losses. The Consumer Goods index traded flat.
Market sentiment, as measured by market breadth, was positive (0.9x), as 13 tickers declined, relative to 12 gainers. NEIMETH (-10.0%) and CUTIX (-9.9%) were the top losers of the day, while GLAXOSMITH (+9.5%) and FIDSON (+9.4%) recorded the largest gains.
CURRENCY
The naira was flat at NGN388.00/USD at the I&E window while it weakened by 0.4% to NGN472.00/USD at the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate crashed by 11.08ppts to 10.7%, as inflows from FAAC disbursements (NGN430.05 billion) improved system liquidity.
The NTB secondary market was mixed, with a bearish tilt, as average yield expanded by 1bp to 1.9%. Across the curve, yield expanded at the mid (+4bps) and long (+1bp) segments, following sell-offs of the 178DTM (+7bps) and 192DTM (+4bps) instruments, respectively; the short end was flat. Similarly, average yield expanded by 1bp to 5.6% at the OMO secondary market.
Also, trading in the Treasury bond secondary market was bearish, as average yield expanded by 2bps to 7.7%. Across the curve, yield contracted at the short (-3bps) end, due to demand for the MAR-2025 (-35bps) bond, while they expanded at the mid (+1bp) and long (+6bps) segments, as investors sold off the JUL-2030 (+5bps) and JUL-2034 (+25bps) bonds, respectively.
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