June 28, 2021/Cordros Report
EQUITIES
The Nigerian equities market opened the week on a sour note, as a sell-down in AIRTELAFRI (-1.5%) extended last week’s bearish trading and dragged the All-Share Index lower by 0.2% to 37,585.25 points. Accordingly, the Month-to-Date and Year-to-Date losses increased to -2.2% and -6.7%, respectively.
The total volume of trades declined by 19.3% to 163.50 billion units, valued at NGN3.44 billion, and exchanged in 3,562 deals. FBNH was the most traded stock by volume at 18.14 million units, while MTNN was the most traded stock by value at NGN1.50 billion.
Sectoral performance was mixed, as the Insurance (+0.2%) and Industrial Goods (+0.1%) indices recorded gains while the Oil & Gas (-0.4%) index declined. The Consumer Goods and Banking indices closed flat.
As measured by market breadth, market sentiment was negative (0.7x), as 18 tickers lost, relative to 13 gainers. BOCGAS (-10.0%) and ROYALEX (-7.9%) recorded the most significant losses of the day, while IKEJAHOTEL (+10.0%) and FIDSON (+7.9%) topped the gainers’ list.
CURRENCY
The naira appreciated by 0.1% to NGN411.28/USD at the I&E window but depreciated by 0.4% to NGN502.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 375bps to 19.3% as there were no significant funding pressures on the system.
The NTB secondary market traded with bullish sentiment, as the average yield contracted by 33bps to 6.6%. Across the curve, the average yield was flat at the short end but contracted at the mid (-32bps) and long (-53bps) segments following demand for the 199DTM (-55bps) and 304DTM (-106bps) bills, respectively. Elsewhere, the OMO segment’s average yield expanded by 12bps to 9.9%.
The Treasury bond secondary market activity was bullish, as the average yield contracted by 6bps to 11.8%. Across the benchmark curve, the average yield contracted at the short (-6bps), mid (-1bp), and long (-9bps) segments due to demand for the JAN-2022 (-35bps), MAR-2027 (-30bps) and MAR-2050 (-35bps) bonds, respectively.
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