June 29, 2021/Cordros Report
EQUITIES
The domestic equities market snapped yesterday’s loss, following late interest in DANSUGAR (+4.2%) and some Tier-2 banks – UBN (+3.7%) and FCMB (+8.1%). Specifically, the All-Share Index advanced by 0.2% to 37,640.75 points. Accordingly, Month-to-Date and Year-to-Date losses moderated to -2.1% and -6.5%, respectively.
The total volume of trades increased by 40.1% to 229.01 million units, valued at NGN2.73 billion and exchanged in 3,678 deals. FCMB was the most traded stock by volume at 40.70 million units, while GTCO was the most traded stock by value at NGN401.15 million.
Analysing by sectors, the Insurance (+2.2%), Consumer Goods (+0.3%) and Banking (+0.3%) indices posted gains. On the other hand, the Oil & Gas (-0.9%) index declined, while the Industrial Goods index was flat.
As measured by market breadth, market sentiment was positive (2.1x), as 27 tickers gained relative to 13 losers. LINKASSURE (+10.0%) and IKEJAHOTEL (+10.0%) recorded the most significant gains of the day, while JAIZBANK (-5.2%) and VERITASKAP (-4.0%) topped the losers’ list.
CURRENCY
The naira appreciated at the I&E window by 0.1% to NGN410.83/USD but stayed flat at NGN502.00/USD at the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 200bps to 17.3%, in the absence of any significant outflows from the system.
The NTB secondary market closed on a bearish note, as the average yield expanded slightly by 1bp to 6.6%. Across the benchmark curve, average yield expanded at the long end by 3bps to 8.4% due to sell-off of the 345DTM (+47bps) bill but stayed flat at the short and mid segments. Similarly, the average yield at the OMO segment expanded by 1bp at 9.9%.
Trading in the Treasury bond secondary market was bullish, as the average yield contracted by 10bps to 11.7%. Across the benchmark curve, average yield contracted at the short (-14bps), mid (-2bps) and long (-11bps) segments following demand for the MAR-2024 (-61bps), MAR-2027 (-11bps) and APR-2049 (-44bps) bonds, respectively.
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