February 2, 2021/Cordros Report

EQUITIES

The local bourse extended yesterday’s loss, as investors sold off WAPCO (-6.7%) and some banking stocks – ZENITHBANK (-3.1%) and GUARANTY (-2.2%). As a result, the All-Share Index declined by 0.7% to 42,043.79 points. Consequently, the Month-to-Date loss increased to -0.9%, while the Year-to-Date gain moderated to +4.4%.

The total volume of trades declined by 5.3% to 556.02 million units, valued at NGN4.79 billion, and exchanged in 7,110 deals. UBN was the most traded stock by volume at 79.52 million units, while ZENITHBANK was the most traded stock by value at NGN1.03 billion.

Sectoral performance was negative, as all the sectors in our coverage – Banking (-3.1%), Insurance (-2.3%), Consumer Goods (-0.9%), Industrial Goods (-0.5%) and Oil & Gas (-0.5%) – recorded declines.

Market sentiment, as measured by market breadth, was negative (0.2x), as 49 tickers declined, relative to 8 gainers. LINKASSURE (-10.0%) and BOCGAS (-10.0%) topped the losers’ list, while CHAMPION (+9.9%) and UNILEVER (+5.2%) recorded the largest gains of the day.
 
CURRENCY

The naira weakened against the dollar at the I&E window by 0.3% to NGN395.00/USD but was flat at the parallel market at NGN480.00/USD.

MONEY MARKET & FIXED INCOME

The overnight lending rate contracted by 58bps to 9.7%, following inflows into the system from OMO maturities (NGN117.60 billion).

Trading in the NTB secondary market was mixed, as average yield stayed put at 1.2%. In the same vein, average yield was also flat at the OMO segment at 1.8%.

The Treasury bonds secondary market closed on a bearish note, as average yield expanded by 5bps to 8.0%. Across the curve, average yield expanded at the short (+19bps) end, due to sell-offs of the APR-2023 (+67bps) bond, but declined at the mid (-8bps) segment, following buying interests in the FEB-2028 (-28bps) bond; average yield was flat at the long end.

Click here to read full PDF copy of report