November 10, 2020/Cordros Report

EQUITIES

Positive trading was sustained in the local bourse following renewed interest in MTNN (+4.1%), BUACEMENT (+1.1%) and some banking names – ZENITHBANK (+2.3%) and STANBIC (+4.4%). As a result, the All-Share Index advanced by 1.3% to 32,647.10 points. Consequently, Month-to-Date and Year-to-Date gains increased to 6.9% and 21.6%, respectively.
 
The total volume of trades decreased by 9.0% to 578.78 million units, valued at NGN7.74 billion and exchanged in 7,651 deals. ZENITHBANK was the most traded stock by volume and value at 67.91 million units and NGN1.62 billion, respectively.
 
Sectoral performance was positive following gains in the Insurance (+3.3%), Oil & Gas (+1.3%), Banking (+0.9%), Consumer Goods (+0.8%) and Industrial Goods (+0.2%) indices.
 
Market sentiment, as measured by market breadth, was positive (3.5x), as 39 tickers gained, relative to 11 losers. CADBURY (+10.0%) and GLAXOSMITH (+10.0%) closed limit up and topped the gainers’ list, while ABCTRANS (-8.8%) and PZ (-5.4%) recorded the largest losses of the day.
 
CURRENCY

The naira closed flat at NGN385.67/USD and NGN465.00/USD at the I&E window and parallel market, respectively.

MONEY MARKET & FIXED INCOME

The overnight lending rate contracted by 114bps to 1.2%, as OMO maturities worth NGN243.77 billion saturated system liquidity.

Trading in the NTB secondary market was mixed, with a bullish tilt, following quiet trading in the market, as participants anticipate tomorrow’s PMA. Consequently, average yield pared by 1bp to 0.5%. Across the curve, average yield was flat at the short and mid segments, but contracted at the long (-2bps) end, following demand for the 289DTM (-3bps) instrument. Elsewhere, average yield expanded by 6bps to 0.3% at the OMO secondary market.

The Treasury bond secondary market was mixed, as average yield was flat at 3.9%. Across the curve, average yield pared at the short (-2bps) and long (-1bp) end, due to the demand for the APR-2023 (-56bps) and JUL-2045 (-13bps) bonds, respectively, but expanded at the mid (+4bps) segment following sell-off of the MAR-2027 (+13bps) bond.

Click here to read full PDF copy of report