August 11, 2021/Cordros Report
EQUITIES
The domestic bourse extended yesterday’s gain as sustained interest in AIRTELAFRI (+4.9%) supported the market’s positive performance. Pertinently, the All-Share Index edged up by 0.7% to 39,448.46 points. Consequently, Month-to-Date gain increased to +2.3%, while the Year-to-Date loss moderated to -2.0%.
The total volume of trades declined by 61.8% to 181.42 million units, valued at NGN2.08 billion, and exchanged in 3,599 deals. TRANSCORP was the most traded stock by volume at 20.49 million units, while MTNN was the most traded stock by value at NGN777.81 million.
Analysing by sectors, the Banking (+0.5%) and Oil and gas (+0.1%) indices recorded gains, while the Insurance, Industrial Goods, and Consumer Goods indices closed flat.
As measured by market breadth, market sentiment was positive (1.4x), as 19 tickers gained, relative to 14 losers. PHARMDEKO (+9.2%) and NEIMETH (+8.6%) recorded the most significant gains of the day. In contrast, FTNCOCOA (-8.9%) and WEMABANK (-7.3%) topped the losers’ list.
CURRENCY
The naira stayed flat at NGN411.40/USD at the I&E window but depreciated by 1.0% to NGN515.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 400bps to 17.5% in the absence of any significant inflows in the system.
Trading in the NTB secondary market was mixed, with bullish bias, as the average yield pared by 2bps to 5.5%. Across the benchmark curve, the average yield was flat at the short end but contracted at the mid (-6bps) and long (-2bps) segments due to demand for the 106DTM (-8bps) and 211DTM (-4bps) bills, respectively. At the PMA, the CBN offered NGN51.50 billion for sale with a total subscription of NGN398.37 billion. Accordingly, the CBN allotted NGN4.80 billion for the 91-day, NGN3.75 billion for the 182-day and NGN147.78 billion for the 364-day bills – at respective stop rates of 2.50% (previously 2.50%), 3.50% (previously 3.50%), and 7.35% (previously 8.20%). Elsewhere, the average yield at the OMO segment expanded by 2bps to 7.7%.
The Treasury bond secondary market was also bullish, as the average yield contracted by 15bps to 11.7%. Across the benchmark curve, the average yield contracted at the short (-17bps), mid (-18bps) and long (-10bps) segments due to demand for the JAN-2026 (-27bps), FEB-2028 (-30bps) and JUL-2045 (-40bps) bonds, respectively.
