May 31, 2021/ Cordros Report

EQUITIES

Trading in the domestic bourse opened the week positively, as the All-Share Index advanced by 0.5% to 38,437.88 points. The performance was driven by late interests in BUACEMENT (+2.8%) and MTNN (+1.0%) stocks. Accordingly, the Month-to-date and Year-to-Date losses moderated to -3.5% and -4.6%, respectively.

The total volume traded decreased by 11.7% to 201.86 million units, valued at NGN2.1 billion, and exchanged in 3,827 deals. VERITASKAP was the most traded stock by volume at 29.78 million units, while ZENITHBANK was the most traded stock by value at NGN481.18 million.

Performance across sectors was mixed, as the Industrial Goods (+1.1%) and Banking (+0.3%) indices recorded gains while the Insurance (-0.5%) and Consumer Goods (-0.2%) indices declined. The Oil & Gas index closed flat.

As measured by market breadth, market sentiment was negative (0.8x), as 22 tickers lost, relative to 17 gainers. ROYALEX (-9.9%) and CHIPLC (-9.6%) recorded the most significant losses of the day, while MRS (+9.6%) and VITAFOAM (+8.9%) topped the gainers’ list.

CURRENCY

The naira was flat at the I&E window and parallel market at NGN495.00/USD and NGN412.00/USD, respectively.

MONEY MARKET & FIXED INCOME

The overnight lending rate contracted by 617bps to 13.0% in the absence of any significant funding pressures on the system.

The NTB secondary market was mixed, as the average yield stayed flat at 6.1%. Elsewhere, the average yield at the OMO segment expanded by 9bps to 9.7%.

Trading in the Treasury bond secondary market was bullish, as the average yield contracted by 5bps to 12.4%. Across the benchmark curve, average yield declined at the short (-6bps), mid (-3bps), and long (-5bps) segments following demand for MAR-2024 (-15bps), FEB-2028 (-11bps) and the JUL-2045 (-27bps) bonds, respectively.

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