October 21, 2020/Cordros Report
EQUITIES
Sell-offs ensued in the domestic equities market, as social unrest, amid the curfew imposed in Lagos dampened investors’ sentiments. Thus, investors took profits on MTNN (-1.4%), WAPCO (-4.4%) and some banking stocks. Consequently, the All-Share Index recorded its biggest loss since October 7th, 2020, as it declined by 0.8% to 28,449.49 points. As a consequence, Month-to-Date and Year-to-Date gains both moderated to 6.0%.
The total volume of trades increased by 9.8% to 326.58 million units, valued at NGN4.22 billion and exchanged in 4,367 deals. UBA was the most traded stock by volume at 40.30 million units, while GUARANTY was the most traded stock by value at NGN1.14 billion.
Sectoral performance was negative, following losses in the Banking (-1.7%), Industrial Goods (-0.3%), Oil & Gas (-0.3%) and Consumer Goods (-0.1%) indices. The Insurance (+0.6%) index recorded the sole gain of the day.
Market sentiment, as measured by the market breadth, was negative (0.1x), as 34 tickers declined, relative to 4 gainers. ROYALEX (-8.0%) and NEIMETH (-7.6%) topped the declines list, while WAPIC (+10.0%) and PORTPAINT (+2.5%) recorded the largest gains of the day.
CURRENCY
The naira closed flat at NGN385.75/USD and NGN463.00/USD at the I&E window and parallel market, respectively.
MONEY MARKET & FIXED INCOME
The overnight lending rate was unchanged at 0.9%, in the absence of any significant movement in system liquidity.
Activities at the NTB secondary market were muted, as average yield was flat at 0.6%. Across the curve, average yield was flat across the short, mid and long segments. Elsewhere, average yield contracted by 7bps to 0.9% at the OMO secondary market.
Trading in the Treasury bond secondary market was bearish, as average yield expanded by 2bps to 4.5%. Across the curve, average yield expanded at the short (+6bps) end, following buying interests in the JAN-2026 (+24bps) bond. Conversely, average yield was flat at the mid and long segments.
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