December 29, 2020/Cordros Report
EQUITIES
The local bourse kicked off the last trading week of 2020 in the green territory, following buying interests in BUACEMENT (+6.7%), ZENITHBANK (+2.0%) and ACCESS (+4.1%) stocks. Thus, the benchmark index increased by 0.80% to 39,110.17 points. Consequently, Month-to-Date and Year-to-Date gain increased to +11.6% and +45.7%, respectively.
The total volume traded increased by 85.4% to 722.57 million units, valued at NGN4.38 billion, and exchanged in 5,042 deals. AIICO was the most traded stock by volume at 273.13 million units, while DANGCEM was the most traded stock by value at NGN993.17 million.
Sectoral performance was mixed, following gains in the Industrial Goods (+2.4%) and Banking (+1.1%) indices, and declines in the Insurance (-0.8%), Oil & Gas (-0.1%) and Consumer Goods (-0.1%) indices.
Market sentiment, as measured by market breadth, was negative (0.9x), as 20 tickers declined, relative to 18 gainers. NCR (-9.7%) and FTNCOCOA (-9.0%) topped the losers’ list, while JAIZBANK (+10.0%) and NEM (+9.6%) recorded the largest gains of the day.
CURRENCY
The naira depreciated by 0.4% and 1.1% to NGN393.50/USD and NGN470.00/USD at the I&E window and parallel market, respectively.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 30bps to 0.9%, in the absence of any significant inflows to 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 0.4%. Similarly, the average yield at the OMO secondary market also stayed put at 0.5%.
Trading in the Treasury bonds secondary market was bearish, as the average yield expanded by 10bps to 6.0%. Across the curve, average yield pared at the short (-4bps) and long (-4bps) end, due to demand for the JAN-2022 (-6bps) and APR-2037 (-19bps) bonds, but expanded at the mid (+56bps) segment, following sell-offs of the APR-2029 (+81bps) bond.
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