December 14, 2020/Cordros Report
EQUITIES
The domestic equities market opened the week with positive trading, as the All-Share Index notched a 1.7% increase to 34,843.44 points. The performance was supported by significant interest in AIRTELAFRI (+10.0%) and cement stocks – DANGCEM (+2.7%) and WAPCO (+2.2%). Accordingly, Month-to-Date loss moderated to -0.6% while Year-to-Date gain increased to +29.8%.
The total volume traded declined by 73.9% to 208.09 million units, valued at NGN3.70 billion, and exchanged in 4,154 deals. ZENITHBANK was the most traded stock by volume and value at 38.63 million units and NGN875.68 million, respectively.
Sectoral performance was mixed, following gains in the Industrial Goods (+1.5%) and Insurance (+1.3%) indices, and declines in the Consumer Goods (-0.9%), Oil & Gas (-0.7%) and Banking (-0.3%) indices.
Market sentiment, as measured by market breadth, was positive (1.9x), as 26 tickers gained, relative to 14 losers. AIRTELAFRI (+10.0%) and ROYALEX (+9.5%) topped the gainers’ list, while PRESTIGE (-10.0%) and INTBREW (-9.9%) recorded the largest losses of the day.
CURRENCY
The naira was flat at NGN394.00/USD and NGN475.00/USD at the I&E window and parallel market, respectively.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 20bps to 1.1%, following outflows from the system for CBN’s weekly FX Invisibles & SMEs auction.
The NTB secondary market was bearish, as the average yield expanded by 11bps to 0.6%. Across the curve, average yield expanded at the short (+2bps), mid (+10bps) and long (+18bps) segments, following sell-offs of the 87DTM (+5bps), 178DTM (+13bps) and 318DTM (+26bps) instruments, respectively. Conversely, average yield at the OMO secondary market pared by 3bps to 0.4%.
The Treasury bonds secondary market was also bearish, as average yield expanded by 34bps to 5.0%. Across the curve, average yield expanded at the short (+39bps), mid (+21bps) and long (+38bps) segments, due to profit-taking on the JAN-2022 (+112bps), MAR-2027 (+46bps) and JUL-2034 (+170bps) bonds, respectively.
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