August 10, 2021/Cordros Report
EQUITIES
The domestic bourse reversed yesterday’s loss as foreign investors’ interest in AIRTELAFRI (+10.0%) drove the NGX ASI higher by 1.6% to 39,176.62 points. Accordingly, the Month-to-Date gain increased to +1.6%, while the Year-to-Date loss moderated to -2.7%.
The total volume of trades increased by 155.8% to 474.53 million units, valued at NGN3.98 billion, and exchanged in 4,161 deals. BOCGAS was the most traded stock by volume and value at 249.77 million units and NGN1.37 billion, respectively.
On sectors, the Insurance (-0.2%), Consumer Goods (-0.1%) and Industrial Goods (-0.1%) indices recorded declines while the Oil & Gas (+0.1%) index was the lone gainer in our coverage. Meanwhile, the Banking index closed flat.
As measured by market breadth, market sentiment was positive (1.3x), as 21 tickers gained, relative to 16 losers. AIRTELAFRI (+10.0%) and UNITYBNK (+7.1%) topped the gainers’ list, while CHIPLC (-6.9%) and JAIZBANK (-4.8%) recorded the most significant losses of the day.
CURRENCY
The naira remained flat at NGN411.50/USD and NGN510.00/USD at the I&E window and the parallel market, respectively.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 25bps to 13.5%, following inflows from OMO maturities (NGN80.00 billion).
The NTB secondary market closed with bullish sentiments, as the average yield pared by 1bp to 5.6%. Across the benchmark curve, average yield contracted at the mid (-4bps) and long (-1bp) segments following market participants’ demand for the 107DTM (-5bps) and 212DTM (-3bps) bills, respectively. However, average yield was flat at the short end. Similarly, the average yield at the OMO segment contracted by 4bps to 7.6%.
Trading in the Treasury bond secondary market was mixed, albeit with a bullish tilt, as the average yield contracted by 6bps to 11.8%. Across the benchmark curve, average yield contracted at the mid (-1bp) and long (-15bps) segments following demand for the JUL-2030 (-5bps) and JUL-2045 (-48bps) bonds, respectively. Conversely, average yield expanded at the short end (+2bps) due to sell-off of the APR-2023 (+20bps) bond.
