February 16, 2021/Cordros Report

EQUITIES

The local bourse retraced in today’s trading session, as the benchmark index declined by 0.2% to 40,494.35 points, as investors took profits off STANBIC (-4.4%) and NB (-3.3%). Consequently, the Month-to-Date loss increased to -4.5%, while the Year-to-Date gain moderated to +0.6%.

The total volume of trades increased by 72.8% to 356.43 million units, valued at NGN5.76 billion, and exchanged in 5,040 deals. GUARANTY was the most traded stock by volume and value at 46.16 million units and NGN1.43 billion, respectively.

Analysing by sectors, the Insurance (-1.5%), Consumer Goods (-0.5%) and Banking (-0.3%) indices recorded declines, while the Oil & Gas (+1.1%) index was the sole gainer of the day. The Industrial Goods index was flat.

Market sentiment, as measured by market breadth, was positive (1.1x), as 21 tickers gained, relative to 20 losers. LEARNAFRCA (+9.3%) and ARDOVA (+9.1%) recorded the largest gains of the day, while UPDCREIT (-10.0%) and CORNERST (-10.0%) topped the losers’ list.
 
CURRENCY

The naira was flat at NGN409.67/USD and NGN473.00/USD at the I&E window and parallel market, respectively.

MONEY MARKET & FIXED INCOME

The overnight lending rate declined by 150bps to 2.8%, following inflows into the system from OMO maturities (NGN260.21 billion).

The NTB secondary market was bullish, as average yield pared by 4bps to 1.5%. Across the curve, average yield was flat at the short and long ends, but contracted at the mid (-15bps) segment, due to demand for the 149DTM (-75bps) instrument. In the same vein, average yield at the OMO segment declined by 13bps to 6.3%.

The Treasury bonds secondary market was bearish, as average yield expanded by 19bps to 9.1%. Across the curve, average yield expanded at the short (+44bps) and long (+11bps) segments, as investors took profits off the JAN-2026 (+131bps) and APR-2037 (+39bps) bonds, respectively. Conversely, average yield contracted at the mid (-9bps) segment, following buying interest in the JUL-2030 (-9bps) bond.

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