February 4, 2021/Cordros Report
EQUITIES
The local bourse sustained its negative run, as profit-taking in bellwethers – DANGCEM (-2.5%), ZENITHBANK (-0.7%) and UBA (-1.1%) prompted a fourth consecutive loss in the NSE All-Share Index. Pertinently, the benchmark index declined by 0.5% to 41,785.80 points. Sequentially, the Month-to-Date loss increased to 1.5%, while the Year-to-Date gain moderated to 3.8%.
The total volume of trades increased by 24.7% to 629.41 million units, valued at NGN7.98 billion, and exchanged in 4,753 deals. FBNH was the most traded stock by volume at 126.36 million units, while GUARANTY was the most traded stock by value at NGN2.88 billion.
Sectoral performance was broadly negative, following losses in the Industrial Goods (-1.2%), Insurance (-1.1%), Banking (-0.3%) and Consumer Goods (-0.1%) indices. The Oil & Gas (+0.3%) index was the sole gainer of the day.
Market sentiment, as measured by market breadth, was negative (0.9x), as 24 tickers declined, relative to 21 gainers. NNFM (-9.9%) and CHAMPION (-9.7%) recorded the largest losses of the day, while AFRINSURE (+10.0%) and GUINEAINS (+10.0%) topped the gainers’ list.
CURRENCY
The naira depreciated by 0.5% to NGN397.63/USD at the I&E window but remained flat at NGN480.00/USD at the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 150bps to 13.0%, following outflows for today’s OMO auction.
The NTB secondary market was a tad bearish, as average yield expanded slightly by 1bp to 1.0%. Across the curve, average yield remained flat at the short and mid segments but pared at the long (-2bps) end following buying interest in the 343DTM (-40bps) instrument. At the OMO segment, average yield expanded by 10bps to 2.0%.
The Treasury bonds secondary market remained bullish, as average yield declined by 4bps to 7.8%. Across the curve, average yield contracted at the short (-7bps) and long (-4bps) end, due to demand for the JAN-2022 (-40bps) and MAR-2036 (-20bps) bonds, respectively; the mid-segment was flat.
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