January 7, 2021/Cordros Report

EQUITIES

The local bourse sustained its positive run, as buying interests in SEPLAT (+10.0%), NB (+3.6%) and GUARANTY (+1.5%) stocks buoyed a second consecutive gain in the market. Against the foregoing, the NSE ASI notched a 0.3% gain to close at 40,590.85 points, with Month-to-Date and Year-to-Date returns both increasing to +0.8%.
 
The total volume of trades increased significantly by 755.0% to 2.13 billion units, valued at NGN7.51 billion, and exchanged in 4,558 deals. CHAMPION was the most traded stock by volume and value at 1.91 billion units and NGN4.95 billion, respectively.
 
Performance across sectors was broadly positive, following gains in the Oil & Gas (+5.7%), Consumer Goods (+0.8), and Banking (+0.5%) indices. The Insurance (+0.02%) index recorded a decline, while the Industrial Goods index closed flat.
 
Market sentiment, as measured by market breadth, was positive (1.9x), as 26 tickers gained, relative to 14 losers. FTNCOCOA (+10.0%) and SEPLAT (+10.0%) topped the gainers’ list, while SOVRENINS (-9.1%) and COURTVILLE (-8.7%) recorded the largest losses of the day.
 
CURRENCY

The naira appreciated by 0.2% to NGN393.67/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 was unchanged at 0.8%, as system liquidity –estimated at NGN1.11 trillion— remains buoyant.

Trading in the NTB secondary was mixed, with a bearish tilt, as the average yield expanded slightly by 1bp to 0.4%. Across the curve, average yield was flat at the short and mid segments, but expanded at the long (+2bps) end, following sell-off of the 189DTM (+9bps) instrument. Similarly, the OMO secondary market was bearish, as average yield expanded by 4bps to 0.6%.

The Treasury bonds secondary market was also mixed with bearish bias, as the average yield expanded by 1bp to 6.2%. Across the curve, average yield declined at the short (-12bps) end, due to demand for the APR-2023 (-33bps) bond, but expanded at the mid (+19bps) and long (+2bps) segments, as investors sold off the APR-2029 (+46bps) and APR-2037 (+79bps) bonds, respectively.

Click here to read full PDF copy of report