December 15, 2020/Cordros Report

EQUITIES

The local bourse extended yesterday’s gain as interest in bellwethers, DANGCEM (+3.7%), ZENITHBANK (+4.0%), WAPCO (+7.1%) and GUARANTY (+1.7%) supported proceedings today. Precisely, the NSE ASI advanced by 1.1% to 35,225.22 points. Consequently, Month-to-Date return (+0.5%) turned positive, as Year-to-Date gain increased to +31.2%.

The total volume of trades increased by 27.0% to 264.24 million units, valued at NGN2.95 billion, and exchanged in 4,354 deals. ACCESS was the most traded stock by volume at 28.31 million units while DANGSUGAR was the most traded stock by value at NGN379.60 million.

Sectoral performance was broadly positive, as all sector indices – Insurance (+3.5%), Industrial Goods (+2.4%), Banking (+2.0%) and Oil & Gas (+0.4%) – save for the Consumer Goods (-0.1%) index recorded gains.

Market sentiment, as measured by market breadth, was positive (2.2x), as 28 tickers gained, relative to 13 losers. LASACO (+10.0%) and MANSARD (+9.4%) topped the gainers’ list, while REDSTAREX (-9.8%) and UNITYBNK (-8.8%) 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 contracted by 14bps to 0.9%, as OMO maturities worth NGN337.64 billion hit the system.

The NTB secondary market was muted today, as market participants anticipate renewed supply in tomorrow’s PMA. Thus, average yield was flat at 0.6%. Similarly, the average yield at the OMO secondary market also stayed put at 0.4%.

Activities at the Treasury bonds secondary market were mixed, as average yield contracted slightly by 1bp to 5.0%. Across the curve, average yield expanded at the mid (+2bps) segment, due to profit-taking on the MAR-2027 (+7bps) bond, but pared at the long (-3bps) end, due to buying interests in the MAR-2036 (-12bps) bond. Average yield at the short end was flat.

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