June 7, 2021/Cordros Report

EQUITIES

The Nigerian equities market started the week’s trading negatively, as profit-taking witnessed in GUARANTY (-1.2%) caused a 0.1% decrease in the All-Share Index. Thus, the NGX ASI settled at 38,686.40 points. Accordingly, Month-to-Date gain moderated to +0.7%, while Year-to-Date loss increased to -3.9%.

The total volume of trades increased by 5.9% to 210.75 million units, valued at NGN1.50 billion and exchanged in 3,958 deals. FBNH was the most traded stock by volume at 16.64 million units, while ZENITHBANK was the most traded stock by value at NGN365.90 million.

Sectoral performance was broadly negative as the Insurance (-1.3%), Banking (-0.9%), Consumer Goods (-0.1%) and Industrial Goods (-0.1%) indices declined. On the other hand, the Oil & Gas (+0.3%) index was the lone gainer.

As measured by market breadth, market sentiment was negative (0.5x), as 26 tickers lost relative to 13 gainers. CWG (-9.8%) and HONYFLOUR (-5.7%) topped the losers’ list, while MORISON (+9.7%) and CONOIL (+9.6%) recorded the most significant gains of the day.
 
CURRENCY

The naira depreciated at the I&E window by 0.1% to NGN411.07/USD but was unchanged at NGN502.00/USD in the parallel market.

MONEY MARKET & FIXED INCOME

The overnight lending rate contracted by 75bps to 14.5% in the absence of significant funding pressure on the system.

The NTB secondary market was mixed, as the average yield stayed flat at 6.3%. Elsewhere, the OMO segment’s average yield contracted by 20bps to 9.8%.

Trading in the Treasury bond secondary market ended the day on a bearish note, as the average yield expanded by 2bps to 12.1%. Across the benchmark curve, the average yield was flat at the short end but contracted slightly at the mid (-1bp) segment due to demand for the FEB-2028 (-10bps) bond; the average yield expanded at the long (+6bps) end due to sell-off of the JUL-2045 (+29bps) bond.

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