June 22, 2021/Cordros Report

EQUITIES

The Nigerian equities bourse dipped further into the bear territory as foreign investors sold off AIRTELAFRI (-10.0%). Thus, the All-Share Index declined by 1.8% to 37,847.07 points. Accordingly, Month-to-date return turned negative (-1.5%), while Year-to-Date loss increased to -6.0%.

The total volume of trades increased by 4.3% to 218.27 million units, valued at NGN2.73 billion, and exchanged in 3,524 deals. TRANSCORP was the most traded stock by volume at 42.44 million units, while MTNN was the most traded stock by value at NGN333.75 million.

Sectoral performance was mixed, as the Industrial Goods (-1.1%), Insurance (-0.4%) and Banking (-0.1%) indices declined, while the Oil & Gas (+0.1%) index was the sole gainer. The Consumer Goods index was flat.

As measured by market breadth, market sentiment was negative (0.7x), as 23 tickers lost relative to 17 gainers. AIRTELAFRI (-10.0%) and MBENEFIT (-7.3%) topped the losers’ list, while FIDSON (+10.0%) and VITAFOAM (+9.7%) recorded the most significant gains of the day.

CURRENCY

The naira appreciated at the I&E window by 0.4% to NGN410.00/USD but was flat at NGN500.00/USD at the parallel market.

MONEY MARKET & FIXED INCOME

The overnight lending rate expanded by 25bps to 19.3%, as funding pressures outweighed inflows from OMO maturities (NGN15.00 billion).

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

The Treasury bond secondary market traded flat, as the average yield was unchanged at 11.9%. Across the benchmark curve, the average yield contracted at the mid (-4bps) segment due to demand for the MAR-2027 (-9bps) bond, but expanded slightly at the long (+2bps) end due to the sell-off of the MAR-2035 (+14bps) bond;  the short end closed flat.

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