June 1, 2021/Cordros Report

EQUITIES

Sentiments in the domestic bourse turned negative, as sell-offs of large caps — ZENITHBANK (-0.7%), SEPLAT (-1.2%), and WAPCO (-0.9%) – triggered the market’s loss. Precisely, the All-Share Index declined by 0.1% to 38,414.37 points. Accordingly, Month-to-Date and Year-to-Date losses printed -0.1% and -4.6%, respectively.

The total volume of trades increased by 36.2% to 274.85 million units, valued at NGN2.63 billion, and exchanged in 4,159 deals. UCAP was the most traded stock by volume at 23.97 million units, while ZENITHBANK was the most traded stock by value at NGN470.70 million.

Sectoral performance was broadly negative, as losses in the Oil and Gas (-0.9%), Consumer Goods (-0.3%), Banking (-0.1%), and Industrial Goods (-0.1%) indices reflected the overall market performance. The Insurance (+1.5%) index was the lone gainer.

As measured by market breadth, market sentiment was flat (1.0x), as an equal number of tickers (17) recorded gains and declines. MORISON (+9.9%) and WAPIC (+9.4%) were the top gainers of the day, while CHAMPION (-9.9%) and JOHNHOLT (-7.9%) recorded the most significant losses of the day.

CURRENCY

The naira was flat at the I&E window at NGN412.00/USD but depreciated by 0.6% to NGN498.00/USD in the parallel market.

MONEY MARKET & FIXED INCOME

The overnight lending rate contracted by 33bps to 12.7%, following inflows from OMO maturities (NGN55.46 billion).

Activity in the NTB secondary market was mixed, as the average yield stayed flat at 6.1%. Elsewhere, the OMO segment’s average yield expanded by 6bps to 9.7%.

The Treasury bond secondary market was bullish, as the average yield contracted by 2bps to 12.4%. Across the benchmark curve, the average yield was flat at the short end but contracted at the mid (-4bps) and long (-4bps) segments due to demand for the MAR-2027 (-10bps) and APR-2049 (-15bps) bonds, respectively.
 

Click here to read full PDF copy of report