January 18, 2021/Cordros Report

EQUITIES

The domestic equities market kicked off the week with negative sentiment, following profit taking on DANGCEM (-1.0%), FBNH (-4.0%) and FLOURMILL (-5.5%) stocks. Thus, the All-Share Index declined by 0.2% to 41,082.38 points. Accordingly, Month-to-Date and Year-to-Date return both moderated to +2.0%.
 
The total volume traded increased by 10.8% to 738.52 million units, valued at NGN4.17 billion, and exchanged in 7,396 deals. UNIVINSURE was the most traded stock by volume at 51.79 million units, while ZENITHBANK was the most traded stock by value at NGN820.12 million.
 
Sectoral performance was mixed, following a gain in the Insurance (+6.0%) index, and losses in the Consumer Goods (-0.6%) and Industrial Goods (-0.4%) indices. The Banking and Oil & Gas indices closed flat.
 
Market sentiment, as measured by market breadth, was positive (1.7x), as 35 tickers gained, relative to 21 losers. AIICO (+10.0%) and AFRINSURE (+10.0%) recorded the largest gains of the day, while FLOURMILL (-5.5%) and WEMABANK (-5.3%) topped the losers’ list.
 
CURRENCY

The naira strengthened by 0.2% to NGN393.83/USD at the I&E window but was flat in the parallel market at NGN475.00/USD.

MONEY MARKET & FIXED INCOME

The overnight lending declined by 17bps to 0.8%, following inflows into the system from FGN bond coupon payments (NGN65.00 billion).

The NTB secondary market opened the week on a bullish note, as average yield declined by 11bps to 0.4%. Across the curve, average yield expanded at the mid (+4bps) segment, following sell-off of the 143DTM (+11bps) instrument, and contracted at the long (-25bps) end, as market participants bought up the 311DTM (-43bps) instrument. Average yield was flat at the short end. Similarly, average yield declined by 7bps to 0.7% at the OMO secondary market.

Bearish sentiments persisted in the Treasury bonds secondary market as average yield expanded by 8bps to 6.7%. Across the curve, average yield expanded at the short (+6bps) and mid (+34bps) segments, following sell-offs of the JAN-2022 (+24bps) and APR-2029 (+81bps) bonds, respectively. Conversely, average yield declined at the long (-6bps) end, due to demand for the MAR-2050 (-40bps) bond.

Click here to read full PDF copy of report