July 7, 2021/Cordros Report
EQUITIES
Positive sentiments persisted in the local bourse following investors interest in Tier-1 banking stocks – ACCESS (+2.7%) and ZENITHBANK (+0.8%). Thus, the All-Share Index advanced by 0.2% to 38,501.31 points, with Month-to-Date gain increasing to +1.6% while Year-to-Date loss moderated to -4.4%.
The total volume of trades increased by 2.5% to 296.10 million units, valued at NGN2.56 billion and exchanged in 4,507 deals. FBNH was the most traded stock by volume at 34.84 million units, while ZENITHBANK was the most traded stock by value at NGN689.15 million.
Sectoral performance was broadly positive, following gains across the Insurance (+0.6%), Banking (+0.5%), Oil & Gas (+0.4%), Consumer Goods (+0.1%) and Industrial Goods (+0.1%) indices.
As measured by market breadth, market sentiment was positive (1.8x), as 22 tickers gained relative to 12 losers. CUTIX (+10.0%) and JOHNHOLT (+9.8%) were the top gainers of the day, while BOCGAS (-9.9%) and BERGER (-9.6%) topped the losers’ list.
CURRENCY
The naira was flat at NGN411.45/USD and NGN503.00/USD at the I&E window and parallel market, respectively.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 25bps to 10.5%, in the absence of any significant inflow into the system.
The NTB secondary market was mixed albeit with a bearish tilt, as the average yield expanded slightly by 1bp to 6.8%. Across the benchmark curve, average yield expanded at the long (+1bp) end following sell-off of the 309DTM (+23bps) bill. The short and mid segments closed flat. Similarly, the average yield at the OMO segment expanded by 2bps to 9.9%.
Trading in the Treasury bond secondary market was mixed with a bearish sentiment, as the average yield expanded slightly by 1bp to 11.5%. Across the benchmark curve, average yield expanded at the short (+3bps) end due to sell-off of the JAN-2026 (+7bps) bond but closed flat at the mid and long segments.
