November 2, 2020/Cordros Report
EQUITIES
Trading in the domestic equities market started the week and month on a sour note, as sell-offs of some banking stocks – majorly ETI (-8.9%), FCMB (-9.9%) and ZENITHBANK (-0.7%) —, caused the All Share Index to record its first loss in seven consecutive sessions, as it declined by 0.2% to 30,479.39 points. Consequently, Year-to-Date gain moderated to 13.6%.
The total volume of trades decreased by 53.4% to 376.65 million units, valued at NGN3.81 billion and exchanged in 6,050 deals. FIDELITYBK was the most traded stock by volume at 49.90 million units, while ZENITHBANK was the most traded stock by value at NGN1.03 billion.
Analysing by sectors, the Oil & Gas (-1.2%), Banking (-0.8%) and Industrial Goods (-0.1%) indices recorded declines, while the Insurance (+0.7%) and Consumer Goods (+0.6%) indices posted gains.
Market sentiment, as measured by market breadth, was negative (0.8x), as 26 tickers declined, relative to 22 gainers. CILEASING (-10.0%) and FCMB (-9.9%) topped the declines list, while LIVESTOCK (+9.8%) and DANGSUGAR (+9.8%) recorded the largest gains of the day.
CURRENCY
The naira appreciated by 0.1% to NGN385.63/USD at the I&E window but depreciated by 0.2% to NGN463.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 25bps to 1.0%, in the absence of any significant outflows from the system.
At the NTB secondary market, trading was bullish, as average yield pared by 2bps to 0.5%. Across the curve, average yield contracted at the long (-4bps) end, due to the demand for the 318DTM (-32bps) instrument, but traded flat at the short and mid segments. Elsewhere, average yield was flat at 0.5% at the OMO secondary market.
Activities at the Treasury bond secondary market was bearish, as average yield expanded by 10bps to 4.2%. Across the curve, average yield expanded at the short (+5bps), mid (+9bps) and long (+14bps) segments, following buying interests in the JAN-2022 (+12bps), FEB-2028 (+27bps) and MAR-2050 (+40bps) bonds, respectively.
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