February 25, 2021/Cordros Report
EQUITIES
The domestic bourse retraced in today’s session, as investors took profits off NB (-3.7%), ACCESS (-4.7%) and ZENITHBANK (-1.7%). Consequently, the benchmark index declined by 0.3% to 40,095.49 points, with the Month-to-Date and Year-to-Date losses increasing to -5.5% and -0.4%, respectively.
The total volume traded declined by 30.6% to 326.04 million units, valued at NGN3.71 billion, and exchanged in 4,567 deals. TRANSCORP was the most traded stock by volume at 48.44 million units, while ZENITHBANK was the most traded stock by value at NGN637.59 million.
Performance across sectors was broadly negative, as three out of our five coverage indices – Banking (-1.4%), Consumer Goods (-0.8%), and Oil & Gas (-0.2%) – closed in the red. The Insurance (+0.2) index was the lone gainer of the day, while the Industrial Goods index closed flat.
As measured by market breadth, market sentiment remained negative (0.6x), as 23 tickers declined, relative to 14 gainers. LASACO (-9.7%) and FIDSON (-8.4%) topped the losers’ list, while CHAMS (+9.1%) and ROYALEX (+8.0%) recorded the largest gains of the day.
CURRENCY
The naira was flat at NGN408.67/USD and NGN480.00/USD at the I&E window and parallel market, respectively.
MONEY MARKET & FIXED INCOME
The overnight lending rate jumped by 647bps to 8.3%, following outflows from the system for CBN’s weekly OMO auction.
Trading in the NTB secondary market was mixed, with a bearish bias, as the average yield in the space declined slightly by 1bp to 1.5%. The average yield was flat at the short and long ends across the curve but expanded at the mid (+3bps) segment as market participants sold off the benchmark 6-month bill. Elsewhere, average yield also grew slightly by 1bp to 6.1%.
The Treasury bonds secondary market remained bullish, as the average yield declined by 6bps to 9.0%. Across the curve, average yield contracted at the short (-11bps) and long (-5bps) ends due to demand the JAN-2026 (-144bps) and APR-2049 (-38bps) bonds, respectively; the mid-segment was flat.
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