July 28, 2021/Cordros Report
EQUITIES
Trading in the local bourse ended on a bearish note, as a late sell-off of ZENITHBANK (-0.6%) undermined market performance. As a result, the NGX ASI declined by 3bps to close at 38,791.03 points. Accordingly, the Month-to-Date gain printed +2.3%, while the Year-to-Date loss remained flat at -3.7%.
The total volume of trades declined by 2.3% to 237.51 million units, valued at NGN1.88 billion, and exchanged in 4,305 deals. OANDO was the most traded stock by volume at 44.29 million units, while ZENITHBANK was the most traded stock by value at NGN270.80 million.
Sectoral performance was mixed, as the Oil and Gas (+1.7%) and Consumer Goods (+0.1%) indices recorded gains, while the Banking (-0.9%) and Insurance Goods (-0.9%) indices declined. Elsewhere, the Industrial Goods index closed flat.
As measured by market breadth, market sentiment was negative (0.8x), as 22 tickers lost, relative to 18 gainers. TRIPPLEG (-10.0%) and CHIPLC (-10.0%) topped the losers’ list, while CAPHOTEL (+9.9%) and OANDO (+9.8%) recorded the most significant gains of the day.
CURRENCY
The naira was flat at NGN411.60/USD at the I&E window but depreciated by 3.5% to NGN522.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 75bps to 15.5% in the absence of any significant funding pressures on the system.
Trading in the NTB secondary market was muted as market participants positioned for today’s PMA, with the CBN set to roll over NGN58.00 billion worth of maturities. Thus, the average yield stayed flat at 6.3%. Elsewhere, the average yield at the OMO segment expanded slightly by 2bps to 8.6%.
The Treasury bond secondary market was mixed, albeit with bullish bias, as the average yield pared by 1bp to 12.0%. Across the benchmark curve, the average yield was flat at the short and long ends but contracted at the mid (-4bps) segment due to the demand for the APR-2029 (-9bps) bond.
