April 6, 2021/Cordros Report
EQUITIES
Trading in the domestic equities started the week on a sour note, as profit-taking in GUARANTY (-3.3%) and BUACEMENT (-1.1%) stocks triggered a 0.4% decline in the All-Share Index to 38,766.61points. Accordingly, Month-to-Date and Year-to-Date losses increased to -0.7% and -3.7%, respectively.
The total volume of trades decreased by 6.2% to 224.59 million units, valued at NGN2.14 billion, and exchanged in 4,675 deals. UACN was the most traded stock by volume at 34.05 million units, while ZENITHBANK was the most traded stock by value at NGN364.33 million.
Sectoral performance was broadly negative, following declines across the Banking (-1.7%), Insurance (-0.5%), Industrial (-0.5%), Consumer Goods (-0.4%) and Oil & Gas (-0.1%) indices.
As measured by market breadth, market sentiment was negative (0.6x), as 21 tickers lost relative to 13 gainers. MRS (-9.9%) and ALEX (-9.9%) recorded the most significant losses of the day, while ETERNA (+9.9%) and LINKASSURE (+9.7%) topped the gainers’ list.
CURRENCY
The naira depreciated at the I&E window by 0.3% to NGN410.50/USD but was flat at NGN485.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 1875bps to 13.75%, as inflow from OMO Maturities (NGN 24.00 billion) boosted system liquidity.
Trading in the NTB secondary market started the week with a bullish performance, as the average yield contracted by 16bps to 4.0%. The average yield was flat across the curve at the short and long ends but contracted at the mid (-49bps) segment as the market participants bought up the 163-DTM (-107bps) bill. Similarly, the average yield contracted at the OMO segment by 5bps to 6.3%.
Activities at the Treasury bond secondary market ended on a bearish note, as the average yield expanded by 6bps to 9.8%. Across the benchmark curve, average yield expanded at the short (+1bps), mid (+20bps) and long (+2bps) segments following sell-offs of the MAR-2025 (+11bps), FEB-2028 (+34bps) and MAR 2036 (+8bps) bonds, respectively.
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