July 15, 2021/Cordros Report
EQUITIES
The Nigerian equities market remained mixed as buying interests in ZENITHBANK (+1.3%) and STANBIC (+0.7%) were offset by late sell-offs of NB (-3.3%) and GTCO (-0.5%). Thus, the All-Share Index traded flat at 37,866.90 points, with Month-to-Date and Year-to-Date losses flat at -0.1% and -6.0%, respectively.
The total volume of trades decreased by 18.9% to 160.00 million units, valued at NGN927.86 million, and exchanged in 3,038 deals. SOVRENINS was the most traded stock by volume at 14.95 million units, while MTNN was the most traded stock by value at NGN145.48 million.
On sectors, the Oil & Gas (+0.8%), Banking (+0.7%) and Insurance (+0.3%) indices recorded gains while the Consumer Goods (-0.7%) index declined. The Industrial goods index closed flat.
As measured by market breadth, market sentiment was positive (1.2x), as 18 tickers advanced relative to 15 losers. SOVRENINS (+10.0%) and FTNCOCOA (+9.8%) recorded the most significant gains of the day, while IKEJAHOTEL (-9.3%) and WAPIC (-8.5%) topped the losers’ list.
CURRENCY
The naira was flat at NGN411.20/USD and NGN505.00/USD at the I&E window and parallel market, respectively.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 725bps to 7.3%, following inflows from the maturing JUL-2021 bond (NGN561.05 billion) and FGN bond coupon payments (NGN40.68 billion).
The NTB secondary market closed with bearish sentiments, as the average yield expanded by 7bps to 7.1%. Across the benchmark curve, average yield expanded at the short (+26bps) end following sell-off of the 77DTM (+33bps) bill but pared at the long (-1bp) end following demand for the 301DTM (-9bps) bill; the mid segment closed flat. Elsewhere, the average yield at the OMO segment closed flat at 9.5%.
Trading in the Treasury bond secondary market was bullish, as the average yield contracted by 25bps to 11.4%. Across the benchmark curve, average yield contracted at the short (-62bps) and long (-7bps) ends following demand for the JUL-2021 (-353bps) and MAR-2035 (-15bps) bonds, respectively. Conversely, the mid segment closed flat.
