The naira strengthened by 0.1% and 1.1% to NGN394.67/USD and NGN483.00/USD at the I&E window and parallel market, respectively.

December 9, 2020/Cordros Report

EQUITIES

Negative sentiments persisted in the domestic equities market, as the NSE ASI fell by 4bps to 35,021.26 points. The All Share Index was dragged by profit-taking on FBNH (-0.7%), UBA (-0.6%) and ARDOVA (-8.7%) stocks. Consequently, Month-to-Date loss increased to -0.1% while Year-to-Date gain moderated to +30.5%.
 
The total volume traded decreased by 8.0% to 283.09 million units, valued at NGN3.42 billion, and exchanged in 3,855 deals. FBNH was the most traded stock by volume at 40.78 million units, while GUARANTY was the most traded stock by value at NGN1.08 billion.
 
Sectoral performance was broadly negative, as the Insurance (-1.0%), Oil & Gas (-0.4%) and Banking (-0.1%) indices recorded declines. The Industrial Goods and Consumer Goods indices closed flat.
 
Market sentiment, as measured by market breadth, was negative (0.6x), as 21 tickers declined, relative to 13 gainers. ROYALEX (-8.7%) and ARDOVA (-8.7%) topped the losers’ list, while FTNCOCOA (+8.8%) and UNIONDAC (+8.0%) recorded the largest gains of the day.
 
CURRENCY

The naira strengthened by 0.1% and 1.1% to NGN394.67/USD and NGN483.00/USD at the I&E window and parallel market, respectively.

MONEY MARKET & FIXED INCOME

The overnight lending rate declined by 41bps to 0.9%, as system liquidity – estimated at NGN572.07 billion – remained healthy.

The NTB secondary market traded with bearish sentiments, as the average yield expanded by 32bps to 0.1%. Across the curve, average yield expanded at the short (+34bps), mid (+34bps) and long (+30bps) segments, following an upward repricing of all the instruments – save for the 309DTM (-13bps) instrument – in the respective segments. Similarly, average yield expanded by 10bps to 0.5% at the OMO secondary market.

The Treasury bonds secondary market remained bearish, as average yield expanded by 14bps to 4.3%. Across the curve, average yield expanded at the short (+62bps) and mid (+6bps) segments, due to profit-taking on the MAR-2025 (+216bps) and FEB-2028 (+25bps) bonds, respectively. Conversely, average yield contracted at the long (-23bps) end, following buying interest in the APR-2037 (-122bps) bond.

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