January 19, 2021/Cordros Report
EQUITIES
The local bourse extended yesterday’s loss, as investors sold off BUACEMENT (-1.1%), ACCESS (-3.7%) and UBA (-2.2%) stocks. As a result, the All-Share Index declined by 0.1% to 41,051.63 points. Consequently, Month-to-Date and Year-to-Date returns moderated to +1.9%.
The total volume of trades declined by 28.9% to 525.01 million units, valued at NGN5.34 billion, and exchanged in 5,965 deals. TRANSCORP was the most traded stock by volume at 42.94 million units, while BUACEMENT was the most traded stock by value at NGN2.05 billion.
Analysing by Sectors, the Insurance (+6.3%) and Consumer Goods (+0.6%) indices recorded gains, while the Banking (-0.7%), Oil & Gas (-0.5%) and Industrial Goods (-0.4%) indices declined.
Market sentiment, as measured by market breadth, was positive (2.2x), as 43 tickers gained, relative to 20 losers. PRESTIGE (+10.0%) and UNIONDAC (+10.0%) topped the gainers’ list, while ARDOVA (-8.6%) and FTNCOCOA (-8.3%) recorded the largest losses of the day.
CURRENCY
The naira strengthened by 0.1% to NGN393.33/USD at the I&E window but remained flat in the parallel market at NGN475.00/USD.
MONEY MARKET & FIXED INCOME
The overnight lending rate declined by 33bps to 0.5%, as inflows into the system from OMO maturities (NGN226.31 billion) outweighed outflows for CBN’s FX Invisibles & SMEs auction.
Trading in the NTB secondary market was mixed, as average yield was flat at 0.4%. Across the curve, average yield contracted at the mid (-6bps) segment, following buying interest in the 114DTM (-20bps) instrument, but was flat at the short and long ends. At the OMO segment, average yield expanded slightly by 2bps to 0.7%.
The Treasury bonds secondary market turned bullish in today’s session, as average yield declined by 10bps to 6.6%. Across the curve, average yield expanded at the short (+4bps) end, following sell-off of the JAN-2026 (+19bps) bond, and declined at the mid (-6bps) and long (-23bps) segments, due to demand for the FEB-2028 (-27bps) and APR-2049 (-146bps) bonds, respectively.
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