August 2, 2021/Cordros Report
EQUITIES
Trading in the domestic equities market opened the week with bullish performance as investors’ interest in bellwether MTNN (+1.8%), drove a 0.2% gain in the All-Share Index to 38,604.72 points. Consequently, the Year-to-Date loss moderated to -4.1%.
The total volume of trades declined by 36.9% to 244.29 million units, valued at NGN1.91 billion, and exchanged in 4,609 deals. TRANSCORP was the most traded stock by volume at 40.26 million units, while GTCO was the most traded stock by value at NGN229.52 million.
Analysing by sectors, the Oil & Gas (-0.6%), Industrial Goods (-0.6%), Consumer Goods (-0.4%) and Insurance (-0.3%) indices recorded declines while the Banking (+0.6%) index gained.
As measured by market breadth, market sentiment was negative (0.7x), as 24 tickers declined relative to 17 gainers. ETERNA (-10.0%) and NEIMETH (-9.7%) recorded the most significant losses of the day, while JBERGER (+8.9%) and NPFMCRBK (+8.0%) topped the gainers’ list.
CURRENCY
The naira was flat at NGN411.50/USD at the I&E window but appreciated by 0.6% to NGN512.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 200bps to 5.8%, in the absence of significant funding pressures on the system.
The NTB secondary market closed with mixed sentiments, as the average yield pared by 1bp to 5.9%. Across the benchmark curve, average yield contracted at the long (-2bps) end following demand for the 346DTM (-20bps) bill, but stayed flat at the short and mid segments. Similarly, the average yield at the OMO segment contracted by 60bps to 8.1%.
Trading in the Treasury bond secondary market was bullish, as the average yield contracted by 2bps to 12.0%. Across the benchmark curve, average yield contracted at the short (-4bps) and long (-1bp) ends as investors bought the JAN-2026 (-11bps) and MAR-2050 (-13bps) bonds, respectively. The average yield was flat at the mid segment.
