June 17, 2021/Cordros Report

EQUITIES 

The domestic equities market extended yesterday’s gain as investors’ demand for GUARANTY (+1.8%) and NB (+1.2%) notched the All-Share Index higher by 0.1% to 38,615.11 points. Accordingly, Month-to-Date gain increased to +0.5%, while Year-to-Date loss moderated to -4.1%.

The total volume of trades decreased by 47.0% to 160.44 million units, valued at NGN1.40 billion, and exchanged in 3,260 deals. WEMABANK was the most traded stock by volume at 27.24 million units, while ZENITHBANK was the most traded stock by value at NGN382.13 million.

On sectors, the Insurance (+1.0%), Banking (+0.8%) and Consumer Goods (+0.2%) indices recorded gains, while the Industrial Goods and Oil & Gas indices closed flat.

As measured by market breadth, market sentiment was positive (2.3x) as 18 tickers gained, relative to 8 losers. CHAMPION (+10.0%) and WAPIC (+9.4%) recorded the most significant gains of the day, while CHIPLC (-9.0%) and UNITYBANK (-3.5%) topped the losers’ list.

CURRENCY

The naira appreciated at the I&E window and parallel market by 0.1% and 3.5% to NGN411.50/USD and NGN485.00/USD, respectively.

MONEY MARKET & FIXED INCOME

The overnight lending rate expanded by 250bps to 18.8%, following debits from the system for NTB net issuances (NGN15.74 billion) and CBN’s weekly OMO auction.

The NTB secondary market traded on a mixed note, as the average yield was flat at 6.4%. Similarly, the average yield at the OMO segment closed flat at 9.7%.

Trading in the Treasury bond secondary market was bullish, as the average yield contracted by 6bps to 12.1%. Across the benchmark curve, average yield contracted at the mid (-6bps) and long (-20bps) segments, due to demand for the MAR-2027 (-24bps) and JUL-2045 (-37bps) bonds but expanded at the short (+8bps) end, following sell-off of the MAR-2025 (+38bps) bond.

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