January 26, 2021/Cordros Report

EQUITIES

Nigerian equities sustained yesterday’s gain, as buying interests in large-cap stocks – AIRTELAFRI (+7.6%), MTNN (+0.5%) and WAPCO (+3.8%) – spurred a 1.2% increase in the All-Share Index to 41,584.94 points. Sequentially, Month-to-Date and Year-to-Date returns increased to +3.3%.

The total volume of trades increased by 40.5% to 467.89 million units, valued at NGN5.57 billion, and exchanged in 5,990 deals. TRANSCORP was the most traded stock by volume at 45.93 million units, while AIRTELAFRI was the most traded stock by value at NGN1.18 billion.

Sectoral performance was mixed, following gains in the Consumer Goods (+0.5%), Insurance (+0.4%) and Industrial Goods (+0.3%) indices, and losses in the Oil & Gas (-5.3%) and Banking (-0.1%) indices.

Market sentiment, as measured by market breadth, was positive (1.8x), as 32 tickers gained, relative to 18 losers. RTBRISCOE (+10.0%) and CHAMPION (+9.8%) recorded the largest gains of the day, while JOHNHOLT (-10.0%) and SEPLAT (-9.3%) topped the losers’ list.
 
CURRENCY

The naira strengthened by 0.1% to NGN394.00/USD at the I&E window and weakened in the parallel market by 0.6% to NGN480.00/USD.

MONEY MARKET & FIXED INCOME

The overnight lending rate declined by 125bps to 5.3%, following inflows into the system from OMO maturities (NGN190.15 billion).

The NTB secondary market traded in a lull, with many participants staying on the sidelines as they anticipate the renewed supply from the CBN at tomorrow’s auction. The market ended on a bearish note with average yield expanding by 3bps to 0.6%. Across the curve, average yield was flat at the short end but expanded at the mid (+1bp) and long (+7bps) segments, following sell-offs of the 184DTM (+4bps) and 212DTM (+11bps) instruments, respectively. Similarly, average yield expanded by 7bps to 1.3% at the OMO secondary market.

The Treasury bonds secondary market remained bearish in today’s session, as average yield expanded by 26bps to 7.3%. Across the curve, average yield expanded at the short (+28bps) and long (+39bps) end, due to profit-taking on the JAN-2026 (+86bps) and APR-2049 (+101bps) bonds, respectively. Conversely, average yield pared at the mid (-1bp) segment, as a result of buying interest in the JUL-2030 (-3bps) bond.

Click here to read full PDF copy of report