April 27, 2021/Cordros Report

EQUITIES

The Nigerian equities market traded with mixed sentiments, as buying interests in OKOMUOIL (+5.6%) and WEMABANK (+8.8%) offset losses in some Tier 1 banks GUARANTY (-0.5%) and ACCESS (-1.3%). Accordingly, the All-Share Index traded flat at 39,305.48 points, with Month-to-Date and Year-to-Date returns flat at +0.7% and -2.4%, respectively.

The total volume of trades decreased by 23.4% to 252.57 million units, valued at NGN1.77 billion, and exchanged in 3,474 deals. ACCESS was the most traded stock by volume at 57.18 million units, while GUARANTY was the most traded by value at NGN496.43 million.

On sectors, the Insurance (+1.0%) and Oil & Gas (+0.2%) indices recorded gains, while the Banking (-0.6%) index declined. The Consumer Goods and Industrial Goods indices closed flat.

As measured by market breadth, market sentiment was positive (1.4x), as 23 tickers advanced relative to 16 losers. PRESTIGE (+9.5%) and WEMABANK (+8.8%) recorded the most significant gains of the day, while CHIPLC (-9.1%) and UPL (-8.6%) topped the losers’ list.
 
CURRENCY

The naira depreciated at the I&E window by 0.4% to NGN411.67/USD but stayed flat at NGN485.00/USD in the parallel market.

MONEY MARKET & FIXED INCOME

The overnight lending rate expanded by 50bps to 14.8%, as funding pressures outweighed inflows from FGN Bond coupon payment (NGN46.79 billion) and OMO Maturities (NGN40.00 billion).

The NTB secondary market traded lull, as the average yield was flat at 4.7%. Similarly, the average yield at the OMO segment was flat at 7.7%.

Trading in the Treasury bond secondary market was bearish, as the average yield expanded by 22bps to 11.7%. Across the benchmark curve, the average yield expanded at the short (+52bps), mid (+5bps) and long (+6bps) segments due to sell-offs of the APR-2023 (+156bps), MAR-2027 (+21bps) and APR-2037 (+20bps) bonds, respectively.

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