December 3, 2020/Cordros Report

EQUITIES

Negative sentiments persisted in the domestic equities market, as investors sold off on Tier 1 banks, UBA (-5.2%), GUARANTY (-1.5%) and ZENITHBANK (-1.9%). As a result, the NSE ASI declined by 0.3% to 34,968.94 points. Accordingly, Month-to-Date return declined to -0.2% and Year-to-Date gain moderated to 30.3%.

The total volume of trades decreased by 21.5% to 289.39 million units, valued at NGN7.35 billion, and exchanged in 4,878 deals. UBA was the most traded stock by volume at 34.45 million units while MTNN was the most traded stock by value at NGN4.38 billion.
 
Performance across sectors was broadly negative, as three of our coverage indices – Banking (-2.1%), Insurance (-0.8%) and Consumer Goods (-0.2%) – closed in red. The Oil & Gas (+0.4%) index recorded the day’s sole gain, while the Industrial Goods index closed flat.
 
Market sentiment, as measured by market breadth, was negative (0.5x), as 25 tickers declined, relative to 13 gainers. UNITYBNK (-9.9%) and CHAMS (-8.0%) topped the losers’ list, while MBENEFIT (+9.5%) and ROYALEX (+9.1%) were the largest gainers of the day.
 
CURRENCY

The naira was flat at NGN395.00/USD at the I&E window but appreciated by 3.2% to NGN470.00/USD in the parallel market.

MONEY MARKET & FIXED INCOME

The overnight lending rate declined by 10bps to 0.9%, following inflows into the system for FX retail refunds.

The NTB secondary market remained mixed, as average yield stayed put at 0.1%. At the OMO secondary market, average yield expanded by 9bps to 0.2%.

The Treasury bonds secondary market remained bearish, as average yield expanded by 12bps to 4.0%. Across the curve, average yield expanded at the short (+1bp), mid (+42bps) and long (+4bps) segments, due to profit-taking on the JAN-2026 (+40bps), APR-2029 (+78bps) and MAR-2050 (+24bps) bonds, respectively.

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