July 6, 2021/Cordros Report
EQUITIES
The domestic equities market traded with bullish sentiments, as foreign investors’ demand for SEPLAT (+7.1%) and bargain hunting in Tier-1 Banking stocks — ZENITHBANK (+2.9%), ACCESS (+5.1%) and UBA (+5.4%) — spurred the market’s gain. Accordingly, the All-Share Index rose above the 38,000 psychological mark, advancing by 0.5% to 38,418.04 points. Consequently, the Month-to-Date gain increased to 1.4%, while the Year-to-Date loss moderated to -4.6%.
The total volume of trades increased by 2.2% to 288.93 million units, valued at NGN2.42 billion and exchanged in 4,540 deals. FIDELITYBK was the most traded stock by volume at 42.07 million units, while SEPLAT was the most traded stock by value at NGN418.50 million.
Sectoral performance was broadly positive, as the Oil & Gas (+4.9%), Banking (+3.3%), Industrial Goods (+0.1%), and Consumer Goods (+0.1%) indices all recorded gains. On the other hand, the Insurance (-0.3%) index was the sole loser.
As measured by market breadth, market sentiment was positive (2.7x), as 27 tickers gained relative to 10 losers. MAYBAKER (+9.7%) and UAC-PROP (+9.6%) topped the gainers’ list, while ETERNA (-9.7%) and LINKASSURE (-9.4l%) topped the losers’ list.
CURRENCY
The naira depreciated by 0.1% to NGN411.45/USD at the I&E window but stayed flat at NGN503.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 50bps to 10.3% in the absence of significant funding pressures on the system.
Trading in the NTB secondary market closed on a bearish note, as the average yield expanded by 13bps to 6.7%. Across the benchmark curve, the average yield was flat at the short and mid segments but expanded at long (+10bps) end due to sell-offs of the 359DTM (+945bps) bill. Elsewhere, the average yield at the OMO segment contracted by 2bps to 9.9%.
The Treasury bond secondary market was bearish, as the average yield expanded by 2bps to 11.5%. Across the benchmark curve, the average yield was flat at the short and long ends but expanded at the mid (+8bps) segment due to sell-off of the MAR-2027 (+11bps) bond.
