June 21, 2021/Cordros Report

EQUITIES

The Nigerian equities market started the week’s trading negatively, as sell-offs on BUACEMENT (-2.8%) underpinned a 0.3% decline in the All-Share Index to 38,545.30 points. Accordingly, Month-to-Date gain moderated to +0.3%, while Year-to-Date loss increased to -4.3%.

The total volume of trades decreased by 5.2% to 209.21 million units, valued at NGN1.76 billion, and exchanged in 3,390 deals. ACCESS was the most traded stock by volume at 22.72 million units, while ZENITHBANK was the most traded stock by value at NGN384.58 million.

Analysing by sectors, the Industrial Goods (-1.2%), Insurance (-1.1%) and Oil & Gas (-0.1%) indices declined while the Banking (+0.1%) and Consumer Goods (+0.1%) indices recorded gains.

As measured by market breadth, market sentiment was positive (1.1x), as 18 tickers gained relative to 16 losers. MEYER (+8.8%) and CHAMPION (+6.1%) topped the gainers’ list, while FIDSON (-9.8%) and LASACO (-9.3%) recorded the most significant losses of the day.
   
CURRENCY

The naira depreciated at the I&E window and parallel market by 0.2% to NGN411.67/USD and 0.4% to NGN500.00, respectively.
 
MONEY MARKET & FIXED INCOME

The overnight lending rate contracted by 25bps to 19.0% in the absence of significant funding pressure on the system.

The NTB secondary market was mixed, as the average yield closed flat at 6.4%. Elsewhere, the average yield at the OMO segment pared by 1bp to 9.7%.

Trading in the Treasury bond secondary market was bullish, as the average yield contracted by 7bps to 11.9%. Across the benchmark curve, average yield contracted at the mid (-8bps) and long (-12bps) segments following demand for the FEB-2028 (-26bps) and MAR-2036 (-34bps) bonds; the average yield was flat at the short end.

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