April 12, 2021/Cordros Report
EQUITIES
Trading at the domestic equities market started the week on a sour note, as investors sold off STANBIC (-9.9%). Thus, the All-Share Index declined by 0.4% to 38,712.55 points. Accordingly, Month-to-Date and Year-to-Date losses increased to -0.9% and -3.9%, respectively.
The total volume of trades decreased by 20.8% to 194.02 million units, valued at NGN1.36 billion, and exchanged in 4,290 deals. FIDELITYBK was the most traded stock by volume at 30.88 million units, while ACCESS was the most traded stock by value at NGN188.99 million.
Sectoral performance was broadly negative, following declines across the Consumer Goods (-1.0%), Insurance (-0.9%) and Oil & Gas (-0.1%) indices. The Banking (+0.2%) index was the lone gainer of the day while the Industrial Goods index closed flat.
As measured by market breadth, market sentiment was negative (0.7x), as 20 tickers lost relative to 14 gainers. STANBIC (-9.9) and GUINNESS (-9.9%) topped the losers’ list, while UAC-PROP (+9.3%) and ROYALEX (+8.3%) were the top gainers of the day.
CURRENCY
The naira depreciated at the I&E window by 0.2% to NGN409.75/USD but appreciated by 0.6% to NGN482.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate dipped by 25bps to 12.3%, in the absence of any significant outflows from the system.
Trading in the NTB secondary market was muted, as the average yield closed flat at 4.4%. Across the curve, the average yield was flat at the short (2.4%), mid (3.4%) and long (6.0%) segments. Elsewhere, the OMO segment’s average yield contracted by 9bps to 6.8%.
The Treasury bond secondary market activity was bullish, as the average yield expanded by 5bps to 10.2%. Across the benchmark curve, average yield expanded at the mid (+4bps), and long (+12bps) segments following sell-offs of the JUL-2030 (+18bps) and JUL-2034 (+77bps) bonds but contracted at the short (-2bps) end as market participants bought up the JAN -2022 (-7bps) bond.
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