June 30, 2021/Cordros Report
EQUITIES
The local bourse extended yesterday’s bullish momentum, as bargain hunting by proprietary traders in NESTLE (+10.0%) drove the market higher. Thus, the NGX ASI edged up by 0.7% to 37,907.28 points. Accordingly, the Month-to-Date and Year-to-Date losses moderated to -1.4% and -5.9%, respectively.
The total volume of trades declined by 6.7% to 213.70 billion units, valued at NGN3.23 billion, and exchanged in 3,522 deals. WEMABANK was the most traded stock by volume at 18.31 million units, while MTNN was the most traded stock by value at NGN1.67 billion.
Sectoral performance was mixed, following gains in the Consumer Goods (+4.8%) and Oil & Gas (+0.7%) indices and losses in the Insurance (-0.1%) and Banking (-0.1%) indices. The Industrial Goods index remained flat.
As measured by market breadth, market sentiment was positive (1.3x), as 20 tickers gained, relative to 16 losers. NESTLE (+10.0%) and IKEJAHOTEL (+9.9%) topped the gainers’ list, while BOCGAS (-10.0%) and SOVRENINS (-7.1%) recorded the most significant losses of the day.
CURRENCY
The naira depreciated by 0.2% to NGN411.50/USD and 0.2% to NGN503.00/USD at the I&E window and the parallel market, respectively.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 525bps to 12.0% as inflows from FAAC payment boosted system liquidity.
Trading in the NTB secondary market ended quiet, as investors await the result of today’s NTB primary auction. Thus, the average yield was flat at 6.6%. Elsewhere, the OMO segment’s average yield contracted slightly by 1bp to 9.9%.
The Treasury bond secondary market was mixed, as the average yield stayed flat at 11.7%. Across the benchmark curve, the average yield was flat at the short and mid segments but pared at the long (-1bp) end due to demand for the MAR-2036 (-12bps) bond.
