August 9, 2021/Cordros Report
EQUITIES
Trading at the local bourse opened the week negatively, primarily driven by sell-offs of DANGCEM (-3.3%) and FLOURMILL (-2.3%) stocks. Accordingly, the NGX ASI Index declined by 0.6% to 38,567.26 points. Consequently, Month-to-Date gain printed +0.1%, while Year-to-Date loss increased to -4.2%.
The total volume of trades declined by 24.5% to 185.53 million units, valued at NGN983.39 million, and exchanged in 3,703 deals. WEMABANK was the most traded stock by volume at 25.77 million units, while ELLAHLAKES was the most traded stock by value at NGN106.36 million.
Across our sectoral coverage, the Industrial Goods (-1.8%), Insurance (-0.7%) and Banking (-0.1%) indices declined, the Oil and gas (+1.0%) index gained, while the Consumer Goods index closed flat.
As measured by market breadth, market sentiment was negative (0.9x), as 18 tickers lost, relative to 16 gainers. UPL (-9.8%) and LINKASSURE (-7.8%) recorded the most significant losses of the day, while CONOIL (+9.8%) and NNFM (+9.8%) topped the gainers’ list.
CURRENCY
The naira traded flat at NGN411.50/USD and NGN510.00/USD at the I&E window and parallel market, respectively.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 675bps to 13.8% in the absence of any significant funding pressures on the system.
Trading in the NTB secondary market was bullish, as the average yield contracted by 5bps to 5.6%. Across the benchmark curve, the average yield was flat at the short and mid segments but contracted at the long (-12bps) end due to demand for the 325DTM (-61bps) bill. Similarly, the average yield at the OMO segment contracted by 9bps to 7.7%.
The Treasury bond secondary market traded mixed, as the average yield stayed flat at 11.9%. Across the benchmark curve, the average yield contracted at the short (-1bp) and mid (-5bps) segments due to demand for the JAN-2022 (-4bps) and FEB-2028 (-16bps) bonds, respectively. Conversely, the average yield expanded at the long (+4bps) end due to the JUL-2045 (+56bps) bond sell-off.
