August 13, 2020/Cordros Report

EQUITIES

The domestic bourse sustained the previous session’s gains, as demand for MTNN (+0.8%), NB (+5.9%), and STANBIC (+2.4%) drove the index higher. Consequently, the NSE ASI advanced by 0.4% to 25,236.97 points, with the Month-to-Date gain increasing to +2.2% and the Year-to-Date loss moderating to -6.0%.
 
The total volume traded increased by 26.0% to 258.08 million units, valued at NGN1.68 billion and exchanged in 3,640 deals. TRANSCORP was the most traded stock by volume at 105.00 million units while ZENITHBANK was the most traded stock by value at NGN430.00 million.
 
Sectoral performance was broadly positive, following gains in the Insurance (+2.6%), Consumer Goods (+1.5%), Oil & Gas (+0.3%), and Banking (+0.03%) indices. The Industrial Goods (-0.1%) index was the sole loser.
 
Market sentiment, as measured by the market breadth, was negative (0.8x), as 18 tickers lost relative to 15 gainers. IKEJAHOTEL (-9.9%) and ACADEMY (-9.1%) recorded the largest losses of the day, while MANSARD (+9.7%) and CHIPLC (+8.8%) topped the gainers’ list.

CURRENCY

The naira strengthened by 0.04% to NGN385.83/USD at the I&E window while it remained flat at NGN475.00/USD in the parallel market.

MONEY MARKET & FIXED INCOME

The overnight lending rate contracted by 146bps to 3.8%, following inflows into the system from OMO maturities (NGN29.78 billion) and FX retail refunds.
 
Trading in the NTB secondary market was bullish, as market participants covered for lost bids at the auction. Thus, average yield contracted by 12bps to 1.6%. Across the curve, yield contracted at the short (-9bps) and mid (-28bps) segments, following demand for the 35DTM (-31bps) and 182DTM (-28bps) instruments, respectively; yield at the long end was flat. On the other hand, average yield contracted by 11bps to 4.1% at the OMO secondary market.
 
Elsewhere, trading in the Treasury bond secondary market was bullish, as average yield contracted by 5bps to 7.8%. Across the curve, average yield contracted at the short (-4bps), mid (-6bps) and long (-4bps) segments, due to demand for the JUL-2021 (-12bps), MAR-2027 (-16bps) and APR-2037 (-15bps) bonds, respectively.

Click here to read full PDF copy of report