February 11, 2021/Cordros Report
EQUITIES
The equities market ended the day higher, as stocks snapped an eight-day sell-off on bargain buying in bellwethers – DANGCEM (+7.0%) and MTNN (+1.6%). Against the foregoing, the benchmark index inched higher by 0.8% to 41,014.30 points. Accordingly, the Month-to-Date loss moderated to -3.3%, while the Year-to-Date gain increased to +1.9%.
The total volume of trades increased by 247.4% to 1.27 billion units, valued at NGN6.40 billion, and exchanged in 6,573 deals. TRANSCORP was the most traded stock by volume at 55.75 million units, while MTNN was the most traded stock by value at NGN1.57 billion.
Performance across sectors was broadly negative, as four out of our five coverage indices – Banking (-3.0%), Insurance (-2.9%), Oil & Gas (-0.9%) and Consumer Goods (-0.3%) – closed in the red. The Industrial Goods (+2.6) index was the lone gainer of the day.
Market sentiment, as measured by market breadth, was negative (0.2x), as 45 tickers lost, relative to 7 gainers. LIVESTOCK (-10.0%) and LINKASSURE (-10.0%) topped the losers’ list, while DANGCEM (+7.0%) and MBENEFIT (+5.4%) recorded the largest gains of the day.
CURRENCY
The naira remained flat at NGN400.00/USD at the I&E window, but appreciated by 0.6% to NGN475.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate increased by 58bps to 5.8%, following outflows for CBN’s weekly OMO auction.
The NTB secondary market turned bearish, as market yields adjusted to the auction stop rates. Thus, average yield expanded by 32bps to 1.4%. Across the NTB curve, average yield was flat at short end, but inched higher at the mid (+23bps) and long (+55bps) segments due to sell-offs of the 168DTM (+93bps) and 196DTM (+105bps) instruments, respectively. Elsewhere, average yield at the OMO segment was flat at 6.7%, as market participants positioned for today’s OMO auction.
The Treasury bonds secondary market remained bearish, as average yield expanded by 9bps to 8.8%. Across the curve, average yield expanded at the short (+11bps), mid (+2bps) and long (+12bps) segments, due to sell-offs of the JUL-2021 (+62bps), APR-2029 (+8bps) and MAR-2050 (+44bps) bonds, respectively.
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