March 25, 2021/Cordros Report
EQUITIES
The local bourse ended the day with bullish sentiments, as the All-Share index advanced by 0.5% to 39,293.14 points. Investors’ interests in STANBIC (+9.2%) and MTNN (+1.2%) drove the performance. Consequently, the Month-to-Date and Year-to-Date losses moderated to -1.3% and -2.4%, respectively.
The total volume traded declined by 36.6% to 229.42 million units, valued at NGN3.78 billion and exchanged in 4,016 deals. UBN was the most traded stock by volume at 79.57 million units, while MTNN was the most traded stock by value at NGN1.61 billion.
Analysing by sectors, the Insurance (+0.8%), Banking (+0.6%), and Industrial Goods (+0.1%) indices recorded gains, while the Consumer Goods (-0.2%) and Oil & Gas (-0.1%) indices declined.
As measured by market breadth, market sentiment was positive (2.1x), as 23 tickers gained, relative to 11 losers. WAPIC (+10.0%) and UPDCREIT (+9.8%) recorded the largest gains of the day, while SOVRENINS (-8.3%) and NPFMCRFBK (-7.2%) topped the losers’ list.
CURRENCY
The naira depreciated at the I&E window by 0.2% to NGN409.75/USD but remained flat at NGN486.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 175bps to 15.8%, following outflows for the CBN’s weekly OMO auction.
Trading in the NTB secondary market was bearish, as the average yield expanded by 14bps to 4.0%. Across the curve, average yield expanded at the short (+3bps), and mid (+53bps) segments as market participant sold off the 98-DTM (+16bps) and 175-DTM (+75bps) bills, respectively; the long end was flat. Conversely, the average yield pared by 2bps to 6.6% at the OMO segment.
The Treasury bonds secondary market closed on a bearish note, as the average yield expanded by 12bps to 9.6%. Across the benchmark curve, average yield expanded at the short (+8bps), mid (+12bps), and long (+15bps) ends following sell-offs of the JUL-2021 (+26bps), MAR-2027 (+50bps) and JUL-2045 (+71bps) bonds, respectively.
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