November 25, 2020/Cordros Report

EQUITIES

Nigerian equities extended yesterday’s gain, as major interests in large-caps DANGCEM (+2.6%) and AIRTELAFRI (+1.9%) spurred a 1.3% gain in the All-Share Index to 34,769 points. Against the foregoing, Month-to-Date and Year-to-Date gains increased to 13.9% and 29.5%, respectively.
 
The total volume of trades increased by 19.0% to 434.92 million units, valued at NGN6.91 billion, and exchanged in 7,029 deals. TRANSCORP was the most traded stock by volume at 84.50 million units while DANGCEM was the most traded stock by value at NGN2.16 billion.
 
On sectors, all indices in our coverage – Banking (+1.6%), Industrial Goods (+1.6%), Insurance (+1.4%) and Consumer Goods (+0.7%) – save for the Oil & Gas (-0.6%) index, recorded gains.
 
Market sentiment, as measured by market breadth, was positive (3.3x), as 36 tickers gained, relative to 11 losers. MAYBAKER (+10.0%) and ETERNA (+9.9%) topped the gainers’ list, while TRANSEXPR (-9.4%) and ABCTRANS (-8.6%) recorded the largest losses of the day.
 
CURRENCY

The naira weakened by 2.0% and 0.8% to NGN393.25/USD and NGN487.00/USD at the I&E window and parallel market, respectively.

MONEY MARKET & FIXED INCOME

The overnight lending rate contracted by 56bps to 0.8%, in the absence of any significant outflows from the system.

Trading in the NTB secondary market was mixed, with bullish bias, as market participants focused on today’s NTB PMA. Thus, average yield pared by 1bp to 0.1%. At the PMA, the CBN offered bills worth NGN150.60 billion with allotments of NGN20.37 billion of the 91-day, NGN19.16 billion of the 182-day and NGN111.07 billion of the 364-day – at respective stop rates of 0.02% (previously 0.004%), 0.09% (previously 0.15%), and 0.15% (previously 0.30%). At the OMO secondary market, average yield was unchanged at 0.2%.

The Treasury bonds secondary market remained bullish, as the average yield contracted by 7bps to 3.9%. Across the curve, average yield declined at the short (-22bps) and mid (-1bp) segments, following demand for the JAN-2022 (-75bps) and APR-2029 (-2bps) bonds, respectively, while it expanded slightly at the long (+1bp) end, due to profit-taking on the APR-2049 (+11bps) bond.

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