December 17, 2020/Cordros Report

EQUITIES

The local bourse continued its positive run, as buying interests in AIRTELAFRI (+10.0%), DANGCEM (+2.6%) and ZENITHBANK (+2.7%) stocks buoyed a fourth consecutive gain in the market. Consequently, the NSE ASI notched a 2.1% increase to 36,239.62 points, with Month-to-Date and Year-to-Date returns also increasing to +3.4% and +35.0%, respectively.
 
The total volume traded declined by 47.2% to 343.64 million units, valued at NGN4.35 billion, and exchanged in 3,895 deals. FBNH was the most traded stock by volume at 99.39 million units, while DANGCEM was the most traded stock by value at NGN1.35 billion.
 
Performance across sectors was positive, as all indices in our coverage – Insurance (+2.4%), Industrial Goods (+1.3%), Banking (+1.1%), Oil & Gas (+0.6%) and Consumer Goods (+0.2%) – recorded gains.
 
Market sentiment, as measured by market breadth, was positive (1.7x), as 29 tickers gained, relative to 17 losers. AIRTELAFRI (+10.0%) and ARDOVA (+10.0%) were the top gainers, while OMATEK (-9.1%) and WAPIC (-9.1%) recorded the largest losses of the day.
 
CURRENCY

The naira strengthened by 0.2% to NGN394.00/USD at the I&E window, but depreciated by 0.4% to NGN478.00/USD in the parallel market.

MONEY MARKET & FIXED INCOME

The overnight lending rate expanded by 33bps to 1.3%, following funding pressures for CBN’s weekly OMO auction.

Trading in the NTB secondary market was bullish, as average yield declined by 10bps to 0.4%. Across the curve, average yield contracted at the short (-3bps), mid (-18bps) and long (-12bps) segments, due to demand for the 84DTM (-9bps), 175DTM (-23bps) and 210DTM (-29bps) instruments, respectively. Elsewhere, the average yield at the OMO secondary market was unchanged at 0.4%.

Activities at the Treasury bonds secondary market were bullish, as average yield pared by 2bps to 5.1%. Across the curve, average yield contracted at the short (-4bps) end, following buying interests in JUL-2021 (-19bps) bond, but were flat at the mid and long segments.

Click here to read full PDF copy of report