March 29, 2021/Cordros Report

EQUITIES

The local bourse kicked off the week on a bullish note, as bargain buying on MTNN (+3.1%) and GUARANTY (+4.3%) stocks triggered a 0.7% gain in the All-Share Index to 39,493.37 points. Accordingly, Month-to-Date and Year-to-Date losses moderated to -0.8% and -1.9%, respectively.

The total volume of trades increased significantly by 108.1% to 522.17 million units, valued at NGN10.65 billion, and exchanged in 4,566 deals. GUARANTY was the most traded stock by volume and value at 230.37 million units and NGN7.39 billion, respectively.

Analysing by sectors, the Banking (+2.1%), Insurance (+0.6%), and Consumer Goods (+0.2%) indices gained, while losses were recorded in the Oil & Gas (-0.5%) and Industrial Goods (-0.1%) indices.

As measured by market breadth, market sentiment was positive (2.3x), as 27 tickers gained, relative to 12 losers. COURTVILLE (+10.0%) and CUSTODIAN (+10.0%) recorded the largest gains of the day, while CORNERST (-9.8%) and OANDO (-6.1%) topped the losers’ list.

CURRENCY

The naira appreciated at the I&E window by 0.2% to NGN409.13/USD but stayed flat at NGN485.00/USD in the parallel market.

MONEY MARKET & FIXED INCOME

The overnight lending rate advanced by 225bps to 13.0%, following outflows for FX Invisibles & SMEs Auctions.
 
Activities at the NTB secondary market traded in a lull, as the average yield closed flat at 4.2%. At the OMO secondary market, the average yield declined by 5bps to 6.5%.
 
Trading in the Treasury bond market was mixed, as the average yield pared by 1bp to 9.7%. Across the benchmark curve, average yield declined at the short (-6bps) end following investors buying interests in the JAN-2022 (-18bps) bond, while the average yield advanced at the long (+3bps) end due to the sell-offs of the MAR-2050 (+14bps) bond. The average yield at the mid-segment closed flat.

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