December 7, 2020/Cordros Report

EQUITIES

Trading in the domestic bourse opened the week with negative trading, following sell-offs on ETI (-8.5%), NB (-1.8%) and ZENITHBANK (-1.0%) stocks. Thus, the benchmark index declined by 0.2% to 35,064.36 points. Consequently, Month-to-Date and Year-to-Date gains moderated to 0.1% and 30.6%, respectively.
 
The total volumes traded increased by 10.7% to 324.32 million units, valued at NGN3.19 billion, and exchanged in 4,108 deals. UBA was the most traded stock by volume and value at 89.12 million units and NGN730.83 million, respectively.
 
Across sectors, the Banking (-0.8%), Consumer Goods (-0.6%) and Industrial Goods (-0.1%) indices declined, while the Insurance (+0.5%) and Oil & Gas (+0.2%) indices recorded gains.
 
Market sentiment, as measured by market breadth, was positive (1.1x), as 17 tickers gained, relative to 15 losers. LIVESTOCK (+9.9%) and NNFM (+9.9%) topped the gainers’ list, while TRANSCOHOT (-10.0%) and ETI (-8.5%) recorded the largest losses of the day.
 
CURRENCY

The naira was flat at NGN395.00/USD at the I&E window but weakened by 1.5% to NGN482.00/USD in the parallel market.

MONEY MARKET & FIXED INCOME

The overnight lending rate contracted by 258bps to 1.7%, in the absence of any significant funding pressure on the system.

The NTB secondary market sustained last week’s mixed trading, as average yield on the day was unchanged at 0.1%. Elsewhere, average yield expanded by 8bps to 0.3% at the OMO secondary market.

The Treasury bonds secondary market was bearish, as average yield expanded by 6bps to 4.0%. Across the curve, average yield expanded at the short (+8bps) and mid (+15bps) segments, due to profit-taking on the JAN-2022 (+53bps) and FEB-2028 (+62bps) bonds, respectively. Average yield was flat at the long end.

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