February 3, 2021/Cordros Report
EQUITIES
Bearish sentiments persisted in the domestic equities market, following profit-taking on GUARANTY (-2.1%), WAPCO (-1.6%) and ETI (-4.8%) stocks. Consequently, the NSE ASI declined by 0.1% to 42,000.01 points. Accordingly, the Month-to-Date loss increased to -1.0%, while the Year-to-Date gain moderated to +4.3%.
The total volume of trades declined by 9.2% to 504.84 million units, valued at NGN5.31 billion, and exchanged in 5,887 deals. UBN was the most traded stock by volume at 75.55 million units, while GUARANTY was the most traded stock by value at NGN2.01 billion.
Sectoral performance was negative, as all sectors in our coverage recorded declines. The Insurance (-2.1%) declined the most, followed by the Consumer Goods (-0.2%), Banking (-0.1%), Industrial Goods (-0.1%) and Oil & Gas (-0.1%) indices.
Market sentiment, as measured by market breadth, was negative (0.7x), as 26 tickers declined, relative to 18 gainers. LINKASSURE (-9.9%) and CHAMPION (-9.8%) recorded the largest losses of the day, while NCR (+9.9%) and CHIPLC (+9.5%) topped the gainers’ list.
CURRENCY
The naira weakened further against the dollar at the I&E window by 0.1% to NGN395.50/USD but stayed flat at the parallel market at NGN480.00/USD.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 183bps to 11.5%, in the absence of any significant inflows to the system.
Trading in the NTB secondary market was bullish, as average yield declined by 21bps to 1.0%. Across the curve, average yield was flat at the short and mid segments but contracted at the long (-48bps) end following buying interest in the 344DTM (-58bps) instrument. Conversely, average yield expanded by 4bps to 1.9% at the OMO segment.
The Treasury bonds secondary market also closed on a bullish note, as average yield declined by 7bps to 7.9%. Across the curve, average yield contracted at the short (-9bps), mid (-9bps) and long (-4bps) segments, due to demand for the JAN-2022 (-53bps), APR-2029 (-16bps) and MAR-2050 (-22bps) bonds, respectively.
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