November 17, 2020/Cordros Report

EQUITIES

The domestic equities market extended yesterday’s loss in today’s session, as investors sold off on DANGCEM (-6.5%), NESTLE (-3.5%) and NB (-6.9%) stocks. Thus, the All-Share Index declined by 1.5% to 34,242.83 points. Accordingly, Month-to-Date and Year-to-Date gains moderated to 12.2% and 27.6%, respectively.
 
The total volume of trades increased to 9.36 billion units, valued at NGN12.02 billion, and exchanged in 8,712 deals. UAC-PROP was the most traded stock by volume and value at 8.52 billion units and NGN5.96 billion, respectively.
 
On sectors, all indices in our coverage – Industrial Goods (-3.3%), Consumer Goods (-3.2%), Oil & Gas (-0.9%) and Insurance (-0.5%) – save for the Banking (+0.8%) index declined.
 
Market sentiment, as measured by market breadth, was negative (0.6x), as 30 tickers declined, relative to 17 gainers. WAPIC (-10.0%) and OANDO (-10.0%) topped the losers’ list, while BOCGAS (+10.0%) and GLAXOSMITH (+9.6%) recorded the largest gains of the day.
 
CURRENCY

The naira appreciated by 0.3% to NGN384.80/USD at the I&E window but closed flat at NGN475.00/USD in the parallel market.

MONEY MARKET & FIXED INCOME

The overnight lending rate was flat at 1.0% in the absence of any major movement in system liquidity.

Trading in the NTB secondary market remained mixed, as activity in the market remains muted. Thus, the average yield closed flat at 0.1%. Elsewhere, average yield pared by 1bp to 0.1% at the OMO secondary market.

Activities at the Treasury bond secondary market were bullish, as average yield contracted by 4bps to 4.0%. Across the curve, average yield declined at the short (-1bp) and mid (-18bps) segments, following buying interests in the JAN-2022 (-3bps) and APR-2029 (-39bps) bonds, respectively; average yield was flat at the long end.

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