January 21, 2021/Cordros Report

EQUITIES

Trading in local bourse turned bearish, following profit taking in DANGCEM (-0.2%), MANSARD (-9.8%) and UBA (-1.7%) stocks. As a result, the NSE ASI declined 0.1% to 41,099.15 points. Accordingly, Month-to-Date and Year-to-Date returns moderated to +2.1%.

The total volume of trades increased by 72.6% to 1.12 billion units, valued at NGN6.40 billion, and exchanged in 7,404 deals. TRANSCORP was the most traded stock by volume at 428.29 million units, while GUARANTY was the most traded stock by value at NGN2.05 billion.

Sectoral performance was mixed, following gains in the Industrial Goods (+0.3%) and Oil & Gas (+0.2%) indices, and losses in the Insurance (-6.7%), Consumer Goods (-0.3%) and Banking (-0.2%) indices.

Market sentiment, as measured by market breadth, was negative (0.3x), as 14 tickers gained, relative to 49 losers. CHAMS (-10.0%) and PRESTIGE (-9.9%) recorded the largest losses of the day, while MULTIVERSE (+10.0%) and NNFM (+10.0%) topped the gainers’ list.
 
CURRENCY

The naira was flat at NGN394.00/USD and NGN475.00/USD at the I&E window and parallel market, respectively.

MONEY MARKET & FIXED INCOME

The overnight lending rate increased by 8bps to 1.1%, following debits for CBN’s weekly OMO auction.

Trading in the NTB secondary market was bullish, as average yield pared by 2bps to 0.5%. Across the curve, average yield expanded at the mid (+3bps) segment, following sell-off of the 112DTM (+10bps) instrument, but declined at the long (-5bps) end due to demand for the 357DTM (-14bps) instrument; average yield was flat at the short end. At the OMO segment, average yield was flat at 0.8%.

The Treasury bonds secondary market was bearish in today’s session, as average yield expanded by 19bps to 6.8%. Across the curve, average yield contracted at the mid (-52bps) segment, following buying interests in the MAR-2027 (-211bps) bond, and expanded at the long (+77bps) end, due to profit-taking on the MAR-2050 (+190bps) bond. Average yield was flat at the short end.

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