December 1, 2020/Cordros Report
EQUITIES
Nigerian equities sustained yesterday’s performance, as the All-Share Index recorded a sixth consecutive gain, following buying interests in Tier 1 bank names, GUARANTY (+5.4%), ZENITHBANK (+1.7%) and ACCESS (+1.2%). Against the foregoing, the NSE ASI advanced by 0.3% to 35,147.62 points. Accordingly, Month-to-Date and Year-to-Date return increased to +15.1% and +30.9%, respectively.
The total volume of trades decreased by 25.8% to 308.18 million units, valued at NGN3.40 billion, and exchanged in 4,515 deals. ACCESS was the most traded stock by volume at 43.47 million units while GUARANTY was the most traded stock by value at NGN859.15 million.
Analysing by sectors, the Banking (+2.3%) and Oil & Gas (+0.2%) indices recorded gains, while the Insurance (-1.2%) and Consumer Goods (-0.1%) indices declined. The Industrial Goods index closed flat.
Market sentiment, as measured by market breadth, was negative (0.7x), as 21 tickers declined, relative to 15 gainers. CORNERST (-10.0%) and CHIPLC (-9.7%) topped the losers’ list, while CAVERTON (+9.9%) and CUTIX (+9.8%) were the largest gainers of the day.
CURRENCY
The naira weakened by 1.0% to NGN394.00/USD at the I&E window but appreciated by 2.0% to NGN490.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate declined by 44bps to 1.0%, following inflows to the system from OMO maturities (NGN93.06 billion).
Activity in the NTB secondary market continued with mixed sentiments, following the minimal activity in the space. As a result, average yield was flat at 0.1%. Similarly, average yield at the OMO secondary market was unchanged at 0.1%.
The Treasury bonds secondary market remained bullish, as average yield contracted by 7bps to 3.8%. Across the curve, average yield declined at the short (-17bps) and mid (-4bps) segments, following demand for the MAR-2025 (-40bps) and FEB-2028 (-14bps) bonds, respectively. Average yield was flat at the long end of the curve.
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