August 5, 2021/Cordros Report
EQUITIES
The Nigerian equities market turned bearish after three consecutive days of gains, following late sell-offs of MTNN (-1.8%) and GTCO (-1.2%). Precisely, the All-Share Index declined by 0.3% to 38,801.51 points. Accordingly, Month-to-Date gain printed +0.7%, while Year-to-Date loss increased to -3.7%.
The total volume of trades decreased by 37.3% to 129.28 million units, valued at NGN1.37 billion, and exchanged in 3,560 deals. UBA was the most traded stock by volume at 16.43 million units, while GTCO was the most traded stock by value at NGN364.85 million.
Performance across sectors was mixed as the Consumer Goods (+0.3%) and Insurance (+0.3%) indices recorded gains, the Banking (-0.3%) index declined and the Industrial Goods and Oil and Gas indices closed flat.
As measured by market breadth, market sentiment was positive (1.3x), as 18 tickers gained, relative to 14 losers. CONOIL (+10.0%) and CHIPLC (+8.9%) topped the gainers’ list, while ARDOVA (-6.3%) and VERITASKAP (-4.0%) recorded the most significant losses of the day.
CURRENCY
The naira appreciated by 0.1% to NGN411.25/USD at the I&E window but depreciated by 0.4% to NGN508.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 350bps to 5.5% amid outflows for CBN’s weekly OMO auctions.
Trading in the NTB secondary market ended on a bullish note, as the average yield contracted by 18bps to 5.5%. Across the benchmark curve, the average yield was flat at the short end but contracted at the mid (-12bps) and long (-29bps) segments due to demand for the 175DTM (-20bps) and 208DTM (-48bps) bills, respectively. Similarly, the average yield at the OMO segment contracted by 5bps to 8.0%.
The Treasury bond secondary market was also bullish, as the average yield contracted by 5bps to 11.9%. Across the benchmark curve, the average yield contracted at the short (-7bps), mid (-3bps) and long (-5bps) segments due to demand for the JAN-2022 (-18bps), MAR-2027 (-15bps) and MAR-2036 (-18bps) bonds respectively.
