July 14, 2021/Cordros Report
EQUITIES
Trading in the local bourse ended the day mixed but with a bullish bias, as the All-Share Index notched a 4bps gain to close at 37,872.55. Precisely, investors’ interest in TOTAL (+6.1%) supported market performance, despite sell-offs of ACCESS (-2.2%). Consequently, the Month-to-Date and Year-to-Date losses moderated to -0.1% and -6.0%, respectively.
The total volume of trades was flat at 197.23 million units, valued at NGN2.14 billion, and exchanged in 3,610 deals. UBA was the most traded stock by volume at 35.21 million units, while ZENITHBANK was the most traded stock by value at NGN424.70 million.
Performance across sectors was mixed – the Banking (-0.9%) and Insurance (-0.3%) recorded declines, while the Industrial Goods and Consumer Goods indices closed flat. The Oil and Gas (+0.6%) index was the sole gainer.
As measured by market breadth, market sentiment was positive (1.5x), as 17 tickers gained, relative to 11 losers. CAPHOTEL (+10.0%) and NCR (+9.9%) topped the gainers’ list, while LINKASSURE (-5.4%) and CORNERST (-5.4%) recorded the most significant losses of the day.
CURRENCY
The naira appreciated by 0.1% to NGN411.22/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 contracted by 450bps to 14.5% in the absence of any significant funding pressures on the system.
Trading in the NTB secondary market was bearish, as the average yield expanded by 17bps to 7.0%. Across the benchmark curve, the average yield expanded the short (+6bps), mid (+38bps) and long (+17bps) segments due to sell-offs of the 92DTM (+34bps), 183DTM (+42bps) and 246 (+48bps) bills, respectively. At the PMA, the CBN offered NGN109.43 billion for sale with total subscription of NGN574.68 billion. Accordingly, the CBN allotted NGN5.24 billion for the 91-day, NGN7.60 billion for the 182-day and NGN137.30 billion for the 364-day bills – at respective stop rates of 2.50% (previously 2.50%), 3.50% (previously 3.50%), and 8.67% (previously 9.15%). Elsewhere, the average yield at the OMO segment contracted by 23bps to 9.5%.
The Treasury bond secondary market was bearish, as the average yield expanded by 3bps to 11.7%. Across the benchmark curve, the average yield expanded at the short (+4bps), and long (+5bps) ends due to sell-offs of the JAN-2022 (+39bps) and MAR-2035 (+10bps) bonds, respectively. Conversely, the average yield pared at the mid (-2bps) segment due to demand for the FEB-2028 (-10bps) bond.
