July 22, 2021/Cordros Report
EQUITIES
Trading in the local bourse was negative for most of the day; however, late buying interest in DANGCEM (+7.8%) following the second tranche of the company’s proposed share buyback ensured the market closed higher. Precisely, the All-Share Index advanced by 1.7% to 38,585.52 points – the biggest gain since 29th April 2021 (1.8%). Accordingly, the Month-to-Date gain increased to +1.8%, while the Year-to-Date loss moderated to -4.2%.
The total volume of trades declined by 56.1% to 203.11 million units, valued at NGN1.72 billion, and exchanged in 3,969 deals. STERLNBANK was the most traded stock by volume at 22.49 million units, while GTCO was the most traded stock by value at NGN392.12 million.
Sectoral performance was broadly positive – the Industrial Goods (+4.1%), Oil and Gas (+3.1%), Banking (+0.3%), and Consumer Goods (+0.1%) indices recorded gains. In contrast, the Insurance (-1.9%) index declined.
As measured by market breadth, market sentiment was positive (1.7x), as 20 tickers gained, relative to 12 losers. TOTAL (+10.0%) and CUTIX (+9.8%) recorded the most significant gains of the day, while AIICO (-8.7%) and SOVRENINS (-6.5%) topped the losers’ list.
CURRENCY
The naira was flat at NGN411.63/USD at the I&E window but appreciated by 0.4% to NGN503.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 325bps to 8.3%, following inflows from FGN bond coupon payment (NGN39.81 billion).
The NTB secondary market was bearish, as the average yield expanded by 12bps to 6.8%. Across the curve, the average yield expanded at the short (+10bps) and long (+5bps) ends due to sell-offs of the 7DTM (+24bps) and 357DTM (+874bps) bills, respectively; the mid segment was flat. Elsewhere, the average yield at the OMO segment pared by 2bps to 8.7%.
Trading in the Treasury bond secondary market ended on a bullish note, as the average yield contracted by 3bps to 12.1%. Across the benchmark curve, the average yield contracted at the short (-2bps) and long (-4bps) ends due to demand for the JAN-2022 (-7bps) and MAR-2050 (-13bps) bonds, respectively; the mid segment was flat.
