November 4, 2020/Cordros Report

EQUITIES

Trading in the domestic equities market recorded a marginal gain today, but closed flat, following investors’ interests in banking stocks, FCMB (+5.2%) and GUARANTY (+0.3%). Thus, the All Share Index was flat at 30,741.88 points. Accordingly, Month-to-Date return and Year-to-Date gain were unchanged at +0.7% and 14.5%, respectively.

The total volumes traded decreased by 14.8% to 286.45 million units, valued at NGN3.09 billion and exchanged in 2,889 deals. ACCESS was the most traded stock by volume and value at 145.01 million units and NGN1.17 billion, respectively.

On sectors, the Insurance (+1.0%), and Consumer Goods (+0.1%) indices recorded gains, while the Industrial Goods, Banking and Oil & Gas indices were flat.

Market sentiment, as measured by market breadth, was positive (1.1x), as 12 tickers gained, relative to 11 losers. CHIPLC (+8.8%) and PRESTIGE (+7.4%) topped the gainers list, while MBENEFIT (-4.8%) and WEMABANK (-3.1%) recorded the largest losses of the day.

CURRENCY

The naira was flat at NGN386.00/USD at the I&E window but depreciated by 0.2% in the parallel market to NGN464.00/USD.

MONEY MARKET & FIXED INCOME

The overnight lending rate expanded by 21bps to 1.0% in the absence of any significant inflows into the system.

Trading at the NTB secondary market was muted, as average yield remained flat at 0.5%. Elsewhere, average yield contracted by 11bps to 0.3% at the OMO secondary market.

At the Treasury bond secondary market, trading was bullish, as average yield contracted by 25bps to 3.9%. Across the curve, average yield contracted at the short (-63bps) and long (-8bps) ends, following buying interests in the JAN-2022 (-151bps) and MAR-2050 (-21bps) bonds, respectively. Conversely, average yield expanded at the mid (+3bs) segment, due to the sell-off of the APR-2029 (+7bps) bond.

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