August 27, 2020/Cordros Report

EQUITIES

The local bourse halted its bullish run, as it recorded its first loss in eight consecutive sessions. This is as sell offs of DANGCEM (-0.6%) and ACCESS (-2.3%) triggered a 0.1% decline in the All-Share Index to 25,304.25 points. Accordingly, Month-to-Date gain moderated to +2.5% while the Year-to-Date loss increased to -5.7%.
 
The total trade volume increased by 39.0% to 251.30 million units, valued at NGN1.58 billion and exchanged in 2,954 deals. UACN was the most traded stock by volume and value at 111.87 million units and NGN643.19 million, respectively.
 
Across sectors, performance was mixed following gains in the Insurance (+0.6%) and Consumer Goods (+0.5%) indices, and losses in the Industrial Goods (-0.4%) and Banking (-0.3%) indices. The Oil & Gas indices remained flat.
 
Market sentiment, as measured by the market breadth, was negative (0.6x), as 19 tickers declined relative to 11 gainers. CHIPLC (-8.1%) and FIDSON (-7.3%) recorded the largest losses of the day, while MAYBAKER (+9.9%) and UPL (+9.4%) topped the gainers’ list.

CURRENCY

The naira appreciated at the I&E window by 0.1% to NGN385.75/USD, while it was flat at NGN477.00/USD at the parallel market.

MONEY MARKET & FIXED INCOME

The overnight lending rate contracted by 38bps to 2.0%, as inflows from OMO maturities (NGN283.42 billion) and FX retail refunds came into the system.
 
Trading in the NTB secondary market was bullish, as participants looked to cover lost bids at yesterday’s PMA. Thus, average yield contracted by 7bps to 1.6%. Across the curve, yield contracted at the short (-8bps) and mid (-10bps) segments, due to demand for the 91DTM (-55bps) and 140DTM (-20bps) instruments, respectively; the long end was flat. Similarly, average yield contracted by 11bps to 3.1% at the OMO secondary market.
 
Elsewhere, the Treasury bond secondary market continued to trade with bearish sentiments, as average yield expanded by 2bps to 7.9%. Across the benchmark curve, yield expanded at the mid (+3bps) segment, following sell-off of the FEB-2028 (+34bps) bond. Average yields were unchanged at the short and long segments.

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