December 30, 2020/Cordros Report
EQUITIES
The domestic equities market extended yesterday’s gain, as the All-Share Index notched a 1.0% gain to close at 39,512.39 points. The positive performance was supported by interests in BUACEMENT (+10.0%), INTBREW (+10.0%) and FBNH (+1.4%). Accordingly, Month-to-Date and Year-to-Date gain increased to +12.8% and +47.2%, respectively.
The total volumes of trade declined by 48.4% to 372.93 million units, valued at NGN11.50 billion, and exchanged in 5,186 deals. UBA was the most traded stock by volume at 60.57 million units, while DANGCEM was the most traded stock by value at NGN8.04 billion.
In terms of sectoral performance, the Industrial Goods (+3.7%), Insurance (+3.0) and Consumer Goods (+0.4%) indices recorded gains, while the Banking (-0.7%) and Oil & Gas (-0.4%) indices declined.
Market sentiment, as measured by market breadth, was positive (1.2x), as 23 tickers gained, relative to 19 losers. ETERNA (+10.0%) and BUACEMENT (+10.0%) topped the gainers’ list, while FTNCOCOA (-9.9%) and DEAPCAP (-7.4%) recorded the largest losses of the day.
CURRENCY
The naira depreciated by 0.1% to NGN394.00/USD at the I&E window but was flat at NGN470.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 30bps to 0.6%, in the absence of any significant outflow from the system.
The NTB secondary market traded with bearish sentiments, as the average yield expanded by 9bps to 0.5%. At the recently conducted PMA, the CBN offered bills worth NGN74.84 billion with allotments of NGN10.00 billion of the 91-day, NGN20.00 billion of the 182-day and NGN44.84 billion of the 364-day – at respective stop rates of 0.0350% (previously 0.0480%), 0.5000% (previously 0.5000%), and 1.2100% (previously 1.1390%). Similarly, the average yield at the OMO secondary market expanded by 4bps to 0.6%.
Trading in the Treasury bonds secondary market was bearish, as the average yield expanded by 26bps to 6.2%. Across the curve, average yield expanded at the short (+32bps), mid (+22bps) and long (+23bps) segments, due to profit-taking on the JAN-2026 (+115bps), MAR-2027 (+128bps) and APR-2049 (+106bps) bonds, respectively.
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