December 10, 2020/Cordros Report

EQUITIES

The domestic equities market extended its losing streak for the fourth consecutive trading day, as investors sold off on ZENITHBANK (-6.2%), WAPCO (-10.0%) and FBNH (-10.0%) stocks. Thus, the benchmark index declined by 1.3% to 34,577.26 points. Accordingly, Month-to-Date loss increased to 1.3% while Year-to-Date gain moderated to 28.8%.
 
The total volume of trades increased by 95.7% to 553.95 million units, valued at NGN6.64 billion, and exchanged in 6,441 deals. GUARANTY was the most traded stock by volume and value at 87.02 million units and NGN2.83 billion, respectively.
 
Sectoral performance was negative, following declines across the Banking (-4.1%), Insurance (-3.7%), Consumer Goods (-1.1%), Industrial Goods (-0.7%) and Oil & Gas (-0.7%) indices.
 
Market sentiment, as measured by market breadth, was negative (0.2x), as 40 tickers declined, relative to 6 gainers. FBNH (-10.0%) and WAPCO (-10.0%) topped the losers’ list, while OKOMUOIL (+10.0%) and MBENEFIT (+9.1%) recorded the largest gains of the day.
 
CURRENCY

The naira was flat at NGN394.60/USD at the I&E window, but appreciated by 0.4% to NGN476.00/USD in the parallel market.

MONEY MARKET & FIXED INCOME

The overnight lending rate expanded by 52bps to 1.4%, following outflows from the system for CBN’s weekly OMO auction.

The NTB secondary market was mixed today, as the average yield was flat at 0.5%. Similarly, average yield at the OMO secondary market also stayed put at 0.5%.

The Treasury bonds secondary market remained bearish, as average yield expanded by 7bps to 4.3%. Across the curve, average yield expanded at the short (+1bp) and long (+16bps) segments, due to profit-taking on the JAN-2022 (+7bps) and APR-2049 (+32bps) bonds, respectively. Average yield at the mid segment was flat.

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