July 8, 2021/Cordros Report
EQUITIES
Sentiments in the domestic bourse turned negative, as sell-offs of Tier 1 banks – ACCESS (-3.2%) and UBA (-2.6%) – triggered a 0.1% decline in the All-Share Index to 38,469.87 points. Consequently, the Month-to-Date return moderated to +1.5%, while the Year-to-Date loss increased to -4.5%.
The total volume of trades declined by 19.5% to 238.24 billion units, valued at NGN2.58 billion, and exchanged in 3,927 deals. TRANSCORP was the most traded stock by volume at 34.44 million units, while ZENITHBANK was the most traded stock by value at NGN590.35 million.
Sectoral performance was mixed, as the Oil & Gas (+1.2%) and Insurance (+0.2%) indices recorded gains while the Banking (-0.9%) and Consumer Goods (-0.1%) indices declined. The Industrial Goods index was flat.
As measured by market breadth, market sentiment was negative (0.7x), as 16 tickers lost, relative to 11 gainers. PRESTIGE (-10.0%) and PHARMDEKO (-9.7%) recorded the most significant losses of the day, while NEM (+10.0%) and COURTVILLE (+9.5%) topped the gainers’ list.
CURRENCY
The naira appreciated by 0.1% to NGN411.25/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 expanded by 125bps to 11.8% following outflows for CBN’s weekly OMO auction (NGN17.00 billion).
Trading in the NTB secondary market was mixed with a bearish tilt, as the average yield expanded by 2bps to 6.8%. Across the benchmark curve, the average yield was flat at the short and mid segments but expanded at the long (+5bps) end due to sell-off of the 296DTM (+53bps) bill. Elsewhere, the average yield at the OMO segment contracted by 5bps 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 expanded at the short (+2bps) and mid (+9bps) segments due to sell-offs of the JAN-2026 (+10bps) and APR-2029 (+18bps) bonds, respectively. Conversely, the average yield pared at the long (-2bps) due to demand for the JUL-2034 (-10bps) bond.
