January 28, 2021/Cordros Report
EQUITIES
The local bourse sustained its positive run, as buying interests in some banking names – STANBIC (+5.9%), ZENITHBANK (+3.0%) and GUARANTY (+2.4%) – spurred a fourth consecutive gain in the market. Specifically, the NSE ASI notched a 0.6% increase to 42,169.41 points, with Month-to-Date and Year-to-Date returns both increasing to +4.7%.
The total volume of trades increased by 2.2% to 555.32 million units, valued at NGN5.76 billion, and exchanged in 6,386 deals. TRANSCORP was the most traded stock by volume at 76.18 million units, while ZENITHBANK was the most traded stock by value at NGN936.78 million.
Sectoral performance was mixed, following gains in the Banking (+2.1%), Consumer Goods (+0.9%) and Industrial Goods (+0.2%) indices, and losses in the Oil & Gas (-1.8%) and Insurance (-0.6%) indices.
Market sentiment, as measured by market breadth, was positive (1.2x), as 27 tickers gained, relative to 22 losers. PORTPAINT (+10.0%) and JBERGER (+10.0%) topped the gainers’ list, while ACADEMY (-10.0%) and SOVRENINS (-9.7%) recorded the largest losses of the day.
CURRENCY
The naira was flat at the I&E window and parallel market at NGN394.33/USD and NGN478.00/USD, respectively.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 450bps to 10.0%, as outflows for CBN’s weekly OMO auction pressured the liquidity in the system.
The NTB secondary market was bearish, as average yield expanded by 50bps to 1.1%. Across the curve, average yield was higher across all the tenors – short (+28bps), mid (+30bps) and long (+76bps) – due to upward repricing of the 14DTM (+49bps), 182DTM (+63bps) and 259DTM (+107bps) instruments, respectively. Elsewhere, trading at the OMO segment (average yield flat at 1.6%) was relatively quiet, as market participants positioned for renewed supply at the primary market.
The Treasury bonds secondary market maintained its bearish stance, as average yield expanded by 6bps to 7.4%. Across the curve, average yield contracted at the short (-6bps) end, following buying activity in the JAN-2022 (-86bps) bond, and expanded at the mid (+34bps) segment, due to profit-taking on the APR-2029 (+48bps) bond; the long end was flat.
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