August 16, 2021/Cordros Report
EQUITIES
Trading at the local bourse started the week marginally lower, as late sell-offs of CAP (-3.5%) triggered a 4bps decline in the All-Share Index to 39,505.40 points. Consequently, Month-to-Date and Year-to-Date returns printed +2.5% and -1.9%, respectively.
The total volume of trades declined by 25.2% to 141.28 million units, valued at NGN1.64 billion, and exchanged in 3,393 deals. ETRANZACT was the most traded stock by volume at 16.19 million units, while NESTLE was the most traded stock by value at NGN491.95 million.
Across our sectoral coverage, the Banking (-0.7%), Oil & Gas (-0.3%) and Industrial Goods (-0.1%) indices declined, while the Insurance and Consumer Goods indices closed flat.
As measured by market breadth, market sentiment was positive (1.5x), as 23 tickers gained, relative to 15 losers. MRS (+9.9%) and MAYBAKER (+9.8%) recorded the most significant gains of the day, while ABCTRANS (-8.3%) and LASACO (-6.7%) topped the losers’ list.
CURRENCY
The naira depreciated by 0.2% to NGN411.67/USD at the I&E window but remained flat at NGN515.00/USD at the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 25bps to 17.5%, in the absence of any significant inflows into the system.
The NTB secondary market closed with bearish sentiments, as the average yield expanded by 23bps to 4.9%. Across the benchmark curve, average yield expanded at the short (+45bps), mid (+16bps) and long (+10bps) segments due to sell-offs of the 87DTM (+124bps), 164DTM (+23bps) and 192DTM (+20bps) bills, respectively. Elsewhere, the average yield at the OMO segment closed flat at 7.7%.
Trading in the Treasury bond secondary market was mixed, albeit with a bearish tilt, as the average yield expanded by 3bps to 11.5%. Across the benchmark curve, average yield expanded at the short (+8bps) end due to sell-off of the JAN-2022 (+44bps) bond, but was flat at the mid and long segments.
