July 26, 2021/Cordros Report
EQUITIES
Trading in the domestic equities market carried on last week’s bullish performance, as foreign investors’ interest in AIRTELAFRI (+2.3%) inspired the market’s gain. Precisely, the benchmark index notched a 0.5% increase, to close at 38,849.08 points. Accordingly, Month-to-Date gain increased to +2.5%, while Year-to-Date loss moderated to -3.5%.
The total volume of trades increased by 7.1% to 246.56 million units, valued at NGN2.24 billion, and exchanged in 4,676 deals. FIDELITYBK was the most traded stock by volume at 30.54 million units, while GTCO was the most traded stock by value at NGN378.32 million.
Performance across sectors was broadly positive, as all indices in our coverage – Oil and Gas (+2.2%), Industrial Goods (+0.3%), Consumer Goods (+0.3%), and Banking (+0.3%) – save for the Insurance (-0.4%) index posted gains.
As measured by market breadth, market sentiment was positive (1.8x), as 28 tickers gained, relative to 16 losers. OANDO (+9.8%) and FTNCOCOA (+9.8%) topped the gainers’ list, while UNIVINSURE (-9.1%) and LINKASSURE (-7.1%) recorded the most significant losses of the day.
CURRENCY
The naira was flat at NGN411.50/USD at the I&E window but appreciated by 0.2% to NGN503.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 13.00 ppts to 15.8% in the absence of any significant funding pressures on the system.
Trading in the NTB secondary market ended on a bullish note, as the average yield contracted by 17bps to 6.7%. Across the benchmark curve, the average yield was flat at the short and mid segments but contracted at the long (-32bps) end due to demand for the 213DTM (-65bps) bill. Elsewhere, the average yield at the OMO segment expanded by 4bps to 8.6%.
The Treasury bond secondary market was mixed with a bearish tilt, as the average yield expanded by 7bps to 12.1%. Across the benchmark curve, the average yield expanded at the short (+26bps) end due to a sell-off of the JAN-2022 (+133bps) bond but contracted at the long (-2bps) end following the demand the MAR-2036 (-13bps) bonds; the average yield was flat at the mid-segment.
