November 24, 2020/Cordros Report
EQUITIES
The bulls resurfaced in the domestic bourse, as the All-Share Index snapped yesterday’s loss, following investors’ interests in some banking names. Consequently, the NSE ASI advanced by 0.6% to 34,340.56 points. Accordingly, Month-to-Date and Year-to-Date gains increased to 12.5% and 27.9%, respectively.
The total volume of trades decreased by 35.7% to 365.41 million units, valued at NGN4.69 billion, and exchanged in 6,325 deals. ZENITHBANK was the most traded stock by volume and value at 71.93 million units and NGN1.73 billion, respectively.
Sectoral performance was broadly positive, following gains in the Banking (+2.2%), Insurance (+2.0%), Consumer Goods (+0.1%) and Industrial Goods (+0.1%) indices. The Oil & Gas index closed flat.
Market sentiment, as measured by market breadth, was positive (1.6x), as 25 tickers gained, relative to 16 losers. UCAP (+9.5%) and FIDELITYBK (+9.5%) topped the gainers’ list, while ETERNA (-10.0%) and FIDSON (-9.8%) recorded the largest losses of the day.
CURRENCY
The naira strengthened by 0.1% to NGN385.50/USD at the I&E window, but was flat at NGN483.00/USD, at the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 119bps to 1.3%, following inflows into the system for OMO maturities (NGN113.06 billion).
Trading in the NTB secondary market was mixed, with bullish bias, as average yield pared by 1bp to 0.1%. Across the curve, average yield was unchanged at the short and mid segments, but contracted at the long (-2bps) end, following demand for the 338DTM (-20bps) instrument. Conversely, average yield expanded marginally by 1bp to 0.2% at the OMO secondary market.
The Treasury bonds secondary market remained bullish, as the average yield pared by 2bps to 3.9%. Across the curve, average yield declined at the short (-1bp) and mid (-8bps) segments, following demand for the JUL-2021 (-5bps) and FEB-2028 (-20bps) bonds, respectively, while it expanded slightly at the long (+1bp) end, due to profit-taking on the APR-2037 (+3bps) bond.
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