July 13, 2021/Cordros Report
EQUITIES
The domestic bourse traded with mixed sentiments, as interests in INTBREW (+6.0%) and ACCESS (+1.1%) offset losses in FBNH (-4.0%) and ZENITHBANK (-0.4%). Thus, the All-Share Index traded flat at 37,857.24 points, with Month-to-Date and Year-to-Date losses flat at -0.1% and -6.0%, respectively.
The total volume of trades increased by 5.4% to 197.28 million units, valued at NGN1.92 million, and exchanged in 3,567 deals. WEMABANK was the most traded stock by volume at 37.20 million units, while GTCO was the most traded stock by value at NGN823.20 million.
On sectors, the Banking (+0.4%) and Consumer Good (+0.3%) indices gained while the Industrial Goods, Insurance and Oil & Gas indices closed flat.
As measured by market breadth, market sentiment was positive (1.3x), as 16 tickers advanced relative to 12 losers. NCR (+9.6%) and WEMABANK (+9.5%) recorded the most significant gains of the day, while IKEJAHOTEL (-9.1%) and CUSTODIAN (-6.2%) topped the losers’ list.
CURRENCY
The naira depreciated by 0.1% to NGN411.75/USD at the I&E window but stayed flat at NGN505.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 400bps to 19.0%, as funding pressures outweighed inflows from OMO maturities (NGN10.00 billion).
The NTB secondary market was bullish, as the average yield contracted by 3bps to 6.9%. Across the benchmark curve, average yield contracted at the long (-5bps) end due to demand for the 317DTM (-30bps) bill but stayed flat at the short and mid segments. Elsewhere, the average yield at the OMO segment remained unchanged at 9.8%.
Trading in the Treasury bond secondary market was bearish, as the average yield expanded by 11bps to 11.6%. Across the benchmark curve, average yield expanded at the short (+4bps) and long (+24bps) ends due to sell-offs of the APR-2023 (+36bps) and MAR-2036 (+36bps) bonds, respectively; the mid-segment closed flat.
