July 27, 2021/Cordros Report
EQUITIES
Sentiments in the domestic bourse turned negative, as sell-off of bellwether stock – MTNN (-6.7%) triggered a 0.1% decline in the All-Share Index to 38,802.15 points. Consequently, the Month-to-Date gain moderated to +2.4%, while the Year-to-Date loss increased to -3.7%.
The total volume of trades declined by 1.4% to 243.09 billion units, valued at NGN1.90 billion, and exchanged in 4,326 deals. ACCESS was the most traded stock by volume at 21.77 million units, while MTNN was the most traded stock by value at NGN220.40 million.
Analysing by sectors, the Oil & Gas (+2.0%), Banking (+0.2%), and Consumer Goods (+0.1%) indices gained while the Industrial Goods and Insurance indices closed flat.
As measured by market breadth, market sentiment was flat (1.0x), as an equal number (19) of tickers gained relative to losers. OANDO (+9.9%) and CHAMPION (+9.0%) recorded the most significant gains of the day, while UPDCREIT (-6.7%) and UNITYBNK (-6.5%) topped the losers’ list.
CURRENCY
The naira was flat at NGN411.67/USD and NGN504.00/USD at the I&E window and parallel market, respectively.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 50bps to 16.3%, as funding pressures outweighed inflows from OMO maturities (NGN16.84 billion).
The NTB secondary market closed with bullish sentiments, as the average yield contracted by 41bps to 6.3%. Across the benchmark curve, average yield contracted at the short (-79bps), mid (-7bps) and long (-33bps) segments as market participants demanded for the 79DTM (-83bps), 184DTM (-62bps) and 338DTM (-80bps) bills, respectively. Similarly, the average yield at the OMO segment contracted by 2bps to 8.6%.
Trading in the Treasury bond secondary market was mixed with a bullish tilt, as the average yield contracted by 9bps to 12.0%. Across the benchmark curve, average yield contracted at the short (-35bps) end due to demand for the JAN-2022 (-61bps) but expanded at the long (+5bps) end due to sell-off of the MAR-2050 (+20bps) bonds; the mid-segment closed flat.
