December 8, 2020/Cordros Report
EQUITIES
The local bourse sustained yesterday’s bearish performance, with the benchmark index recording its fourth loss in five consecutive trading sessions, following sell-offs on ZENITHBANK (-1.3%), ACCESSBANK (-2.4%) and FLOURMILL (-4.5%) stocks. Precisely, the benchmark index declined by 0.1% to 35,033.74 points. Thus, Month-to-Date return declined to 0.0%, while Year-to-Date gain moderated to 30.5%.
The total volume of trades decreased by 5.1% to 307.72 million units, valued at NGN3.27 billion, and exchanged in 4,507 deals. UBA was the most traded stock by volume and value at 142.44 million units and NGN1.20 billion, respectively.
Performance across sectors was broadly negative, as three of our coverage indices – Banking (-0.3%), Industrial Goods (-0.1%) and Consumer Goods (-0.1%) – closed in the red. The Insurance (+0.5%) and Oil & Gas (+0.3%) indices recorded gains.
Market sentiment, as measured by market breadth, was negative (0.8x), as 17 tickers declined, relative to 14 gainers. REGALINS (-8.3%) and WAPIC (-4.8%) recorded the largest losses of the day, while FTNCOCOA (+9.7%) and ROYALEX (+9.5%) topped the gainers’ list.
CURRENCY
The naira was flat at NGN395.00/USD at the I&E window but weakened by 0.2% to NGN483.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 34bps to 1.3%, as system liquidity – estimated at NGN530.90 billion – was buoyed by inflows from OMO maturities (NGN294.12 billion).
The NTB secondary market continued to trade with mixed sentiments, as the average yield on the day was flat at 0.1%. We note that market participants have shifted their focus to tomorrow’s PMA, where the CBN will be rolling over NGN50.93 billion worth of maturities. Elsewhere, average yield expanded by 10bps to 0.4% at the OMO secondary market.
The Treasury bonds secondary market remained bearish, as average yield expanded by 11bps to 4.1%. Across the curve, average yield expanded at the mid (+8bps) and long (+23bps) segments, due to profit-taking on the APR-2029 (+18bps) and JUL-2045 (+126bps) bonds, respectively. Conversely, average yield pared at the short (-1bp) end, following buying interest in the JAN-2022 (-3bps) bond.
Click here to read full PDF copy of report
