February 9, 2021/Cordros Report

EQUITIES

The local bourse sustained yesterday’s bearish performance, with the NSE ASI recording its eighth consecutive loss, following sell-offs on ZENITHBANK (-0.8%), GUARANTY (-0.5%) and INTBREW (-2.6%) stocks. Specifically, the All-Share Index declined by 0.1% to 41,510.16 points. Accordingly, the Month-to-Date loss increased to 2.1%, while the Year-to-Date gain moderated to 3.1%.

The total volume of trades declined by 10.1% to 305.93 million units, valued at NGN3.95 billion, and exchanged in 4,969 deals. FBNH was the most traded stock by volume at 47.76 million units, while GUINNESS was the most traded stock by value at NGN732.33 million.

Performance across sectors was broadly negative, as four out of our five coverage indices – Insurance (-1.7%), Banking (-0.5%), Oil & Gas (-0.3%) and Consumer Goods (-0.3%) – closed in the red. The Industrial Goods index closed flat.

Market sentiment, as measured by market breadth, was positive (1.0x), as 23 tickers gained, relative to 22 losers. LINKASSURE (+10.0%) and MORISON (+10.0%) topped the gainers’ list, while NNFM (-9.9%) and NEM (-9.2%) recorded the largest losses of the day.
 
CURRENCY

The naira further weakened by 0.6% to NGN401.00/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 declined by 550bps to 8.8%, following inflows into the system from OMO maturities (NGN213.87 billion).

The NTB secondary market stayed mixed, as average yield remained flat at 1.0%. Elsewhere, average yield at the OMO segment expanded by 94bps to 6.4%.

The Treasury bonds secondary market was bearish, as average yield expanded by 19bps to 8.4%. Across the curve, average yield expanded at the short (+17bps), mid (+45bps) and long (+6bps) segments, due to sell-offs of the MAR-2025 (+104bps), FEB-2028 (+164bps) and MAR-2036 (+66bps) bonds, respectively.

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