August 17, 2020/Cordros Report
EQUITIES
The domestic equities market started the week on a negative note, as the NSE ASI declined by 0.3% to 25,132.67 points. This is as investors sold off on their positions in MTNN (-1.0%), DANGCEM (-0.7%), and FLOURMILL (-7.1%) stocks. Consequently, the Month-to-Date gain moderated to +1.8% while Year-to-Date loss increased to -6.4%.
The total volume of trade decreased by 66.6% to 161.23 million units, valued at NGN1.85 billion and exchanged in 3,597 deals. GUARANTY was the most traded stock by volume and value at 19.03 million units and NGN472.19 million, respectively.
Analysing by sectors, the Insurance (+2.9%), Oil & Gas (+0.5%) and Consumer Goods (+0.2%) indices recorded gains, while the Industrial Goods (-0.4%) and Banking (-0.2%) indices declined.
Market sentiment, as measured by the market breadth, was positive (1.1x), as 17 tickers gained relative to 15 losers. UNILEVER (+10.0%) and NNFM (+9.8%) recorded the largest gains of the day, while LIVESTOCK (-8.3%) and VITAFOAM (-5.2%) were the top losers.
CURRENCY
The naira strengthened by 0.1% to NGN385.78/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 230bps to 17.5%, in the absence of significant outflows from the system.
Trading in the NTB secondary market was bearish, as average yield expanded slightly by 1bp to 1.6%. Across the curve, yield expanded at the mid (+4bps) segment, following sell-off of the 164DTM (+5bps) instrument; yield at the short and long ends were flat. On the other hand, average yield was flat at 4.0% at the OMO secondary market.
Elsewhere, trading in the Treasury bond secondary market was bullish, as average yield contracted by 4bps to 7.8%. Across the curve, average yield contracted at the short (-9bps) and mid (-3bps) segments, due to demand for the JUL-2021 (-37bps) and MAR-2027 (-7bps) bonds, respectively. Yield was flat at the long end.
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