May 19, 2021/Cordros Report
EQUITIES
Securities and Exchange Commission Mr Ahanaku Ikechukwu, Director, Market Development Department SEC Mr Edward Okolo, Lecturer, Accounting Department Gombe State University Mallam Murtala Suraj and President Accounting Department Students Gombe State University during an Educational Visit of Gombe State University to SEC in Abuja on May 19, 2021/Image Credit SEC Nigeria
The domestic equities market extended yesterday’s losses as investors sold off on AIRTELAFRI (-10.0%). Thus, the All-Share Index declined by 1.5% to 38,445.09 points. Accordingly, Month-to-Date and Year-to-Date losses increased to -3.5% and -4.5%, respectively.
The total volume of trades decreased by 24.9% to 153.64 million units, valued at NGN2.45 billion, and exchanged in 3,494 deals. UACN was the most traded stock by volume at 10.01 million units, while SEPLAT was the most traded by value at NGN1.08 billion.
Across sectors, the Oil & Gas (+7.1%) and Industrial Goods (+0.9%) indices recorded gains while the Insurance (-0.9%), Banking (-0.6%), and Consumer Goods (-0.3%) indices declined.
As measured by market breadth, market sentiment was negative (0.8x), as 25 tickers declined relative to 21 gainers. CILEASING (-10.0%) and AIRTELAFRI (-10.0%) topped the losers’ list while SEPLAT (+10.0%) and MRS (+10.0%) recorded the most significant gains of the day.
CURRENCY
The naira appreciated at the I&E window by 0.2% to NGN410.75/USD but stayed flat at NGN484.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 175bps to 15.0%, following outflows for CBN’s FX Invisibles and SMEs auction.
The NTB secondary market traded on a bearish note, as the average yield expanded by 9bps to 5.5%. Across the curve, average yield grew at the short (+16bps) and mid (+16bps) segments following sell-offs of the 99DTM (+46bps) and 113DTM (+36bps) instruments, respectively, but stayed flat at the long end. Similarly, the average yield at the OMO segment expanded by 26bps to 9.2%.
Trading in the Treasury bond secondary market was also bearish, as the average yield expanded slightly by 1bp to 12.2%. Across the benchmark curve, average yield expanded at the short (+3bps) end due to sell-off of the JUL-2021 (+22bps) bond but was unchanged at the mid and long segments. The DMO held its PMA for May today. At the PMA, the DMO offered instruments worth NGN150.00 billion to investors through re-openings of the 16.2884% FGN MAR 2027 (Bid-to-offer: 0.74x; Stop rate: 13.10%), 12.5000% MAR 2035 (Bid-to-offer: 1.15x; Stop rate: 14.00%) and 14.8000% FGN APR 2049 (Bid-to-offer: 3.75x; Stop rate: 14.20%) bonds. We note that the demand was stronger (subscription: NGN281.97 billion; bid-to-offer: 1.9x) compared to April (Subscription: NGN265.68 billion; Bid-to-offer: 1.8x). The DMO eventually allotted instruments worth NGN175.25 billion, resulting in a bid-cover ratio of 1.6x.
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