July 12, 2021/Cordros Report
EQUITIES
The Nigerian equities market started the week’s trading on a negative note, as profit-taking witnessed in MTNN (-0.6%), ZENITHBANK (-2.2%), and BUACEMENT (-0.7%) caused a -0.4% decline in the benchmark Index. Thus, the NGX ASI settled at 37,857.89 points. Accordingly, the Month-to-Date and Year-to-Date losses increased to -0.1% and -6.0%, respectively.
The total volume of trades declined by 22.6% to 187.24 million units, valued at NGN2.89 billion, and exchanged in 4,017 deals. ZENITHBANK was the most traded stock by volume and value at 35.32 million units and NGN870.87 million, respectively.
Performance across sectors was mixed, as losses in the Banking (-1.0%), Consumer Goods (-0.4%), and Industrial Goods (-0.4%) indices reflected the overall market performance. On the other hand, the Oil and Gas (+0.1%) index gained, while the Insurance index closed flat.
As measured by market breadth, market sentiment was positive (1.1x), as 14 tickers gained, relative to 13 losers. TRIPPLEG (+9.9%) and REGALINS (+8.9%) topped the gainers’ list, while CWG (-9.5%) and INTBREW (-9.7%) recorded the most significant losses of the day.
CURRENCY
The naira appreciated by 0.1% to NGN411.50 at the I&E window but stayed flat at NGN505.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 550bps to 15.0%, in the absence of any significant funding pressures on the system.
The NTB secondary market traded flat, as the average yield was unchanged at 6.9%. Elsewhere, the average yield at the OMO segment contracted by 12bps to 9.8%.
Trading in the Treasury bond secondary market was mixed, as the average yield stayed flat at 11.5%. Across the benchmark curve, average yield contracted at the short (-4bps) end due to demand for the APR-2023 (-25bps) but expanded at the mid (+6bps) segment due to sell-off of the MAR-2027 (+17bps); the long end was flat.
