July 28, 2020/Cordros Report
EQUITIES
Sentiments in the Nigerian stock market remained weak, as selloffs across large caps MTNN (-1.7%), GUARANTY (-3.0%) and SEPLAT (-9.8%) led to the market’s largest decline in three weeks (July 6th, 2020). Thus, the All-Share index declined by 0.5% to 24,650.16 points. Accordingly, Month-to-Date return moderated to +0.7%, while Year-to-Date loss increased to -8.2%.
The total volume of trades declined by 11.5% to 150.40 million units, valued at NGN1.98 billion and exchanged in 3,780 deals. MBENEFIT was the most traded stock by volume at 26.92 million units while MTNN was the most traded stock by value at NGN939.53 million.
Analysing by sectors, the Insurance (+0.4%) index was the sole gainer, while the Oil & Gas (-5.2%), Banking (-0.5%) and Consumer Goods (-0.1%) indices declined. The Industrial Goods index closed flat.
Market sentiment, as measured by market breadth, was negative (0.8x), as 17 tickers declined, relative to 14 gainers. TOTAL (-10.0%) and SEPLAT (-9.8%) were the top losers of the day, while BERGER (+10.0%) and MBENEFIT (+10.0%) recorded the largest gains.
CURRENCY
The naira depreciated by 0.1% to NGN389.50/USD at the I&E window, while it was flat at NGN475.00/USD at the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 20bps to 2.0%, in the absence of any significant outflows from the system.
Trading in the NTB secondary market was mixed, as market participants anticipate supply from the PMA tomorrow. Thus, average yield was flat at 1.8%. On the other hand, average yield contracted by 4bps to 4.4% at the OMO secondary market.
Elsewhere, trading in the Treasury bond secondary market was bullish, as average yield pared by 4bps to 7.0%. Across the curve, yield contracted at the short (-16bps) end, following demand for the JAN-2022 (-45bps) bond, while they expanded at the mid (+1bp) and long (+4bps) segments, as investors sold off the JUL-2030 (+3bps) and JUL-2034 (+13bps) bonds, respectively.
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