July 29, 2021/Cordros Report
EQUITIES
The Nigerian equities bourse dipped further into the bear territory following investors’ profit-taking activities in UACN (-8.9%) and UBN (-3.7%). Thus, the All-Share Index declined by 0.8% to 38,484.82 points. Accordingly, Month-to-date gain moderated to +1.5%, while Year-to-Date loss increased to -4.4%.
The total volume of trades increased by 9.5% to 259.97 million units, valued at NGN1.98 billion, and exchanged in 4,975 deals. OANDO was the most traded stock by volume at 56.25 million units, while GTCO was the most traded stock by value at NGN444.93 million.
Sectoral performance was broadly negative, as the Industrial Goods (-2.0%), Oil & Gas (-1.9%), Banking (-0.8%) and Consumer Goods (-0.4%) indices declined. The Insurance (+3.2%) index was the sole gainer.
As measured by market breadth, market sentiment was negative (0.8x), as 21 tickers lost relative to 16 gainers. OANDO (-9.7%) and UACN (-8.9%) recorded the most significant losses of the day, while TRIPPLEG (+10.0%) and REGALINS (+9.8%) topped the gainers’ list.
CURRENCY
The naira was flat at NGN411.67/USD at the I&E window but appreciated by 1.0% to NGN520.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 500bps to 11.0% in the absence of significant funding pressures on the system.
The NTB secondary market closed with bullish sentiments, as the average yield contracted by 6bps to 6.3%. Across the benchmark curve, average yield contracted at the short (-27bps) and mid (-12bps) segments following market participants’ demand for the 28DTM (-32bps) and 105DTM (-19bps) bills, respectively; the long (+7bps) end expanded due to sell-off of the 315DTM (+21bps) bill. Elsewhere, the average yield at the OMO segment expanded by 10bps to 8.7%.
Trading in the Treasury bond secondary market was mixed with a bullish tilt, as the average yield pared by 1bp to 12.0%. Across the benchmark curve, average yield expanded at the mid (+3bps) segment as investors sold off of the MAR-2027 (+7bps) bond but contracted at the long (-4bps) end due to demand for the JUL-2045 (-55bps) bond; the short-end was flat.
