August 17, 2021/Cordros Report
EQUITIES
The Nigerian equities market reversed yesterday’s loss following bargain-hunting in DANGCEM (+3.3%). Precisely, the All-Share Index inched higher by 0.1% to 39,550.36 points. Thus, Month-to-Date gain increased to +2.6%, while Year-to-Date loss moderated to -1.8%.
The total volume of trades declined by 21.6% to 110.77 million units, valued at NGN3.08 billion, and exchanged in 3,305 deals. TRANSCORP was the most traded stock by volume at 11.94 million units, while NESTLE was the most traded stock by value at NGN2.17 billion.
Performance across sectors was mixed, as the Consumer Goods (-4.6%), Insurance (-1.2%) and Oil and Gas (-0.2%) indices recorded declines while the Banking index closed flat. The Industrial Goods (+1.8%) index was the sole gainer.
As measured by market breadth, market sentiment was negative (0.9x), as 16 tickers lost, relative to 15 gainers. SCOA (-9.7%) and NESTLE (-9.1%) topped the losers’ list, while HONYFLOUR (+9.8%) and PHARMDEKO (+9.2%) recorded the most significant gains of the day.
CURRENCY
The naira traded flat at NGN411.50/USD and NGN515.00/USD at the I&E window and parallel market, respectively.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 17bps to 17.7% in the absence of any significant inflows in the system.
Trading in the NTB secondary market ended on a bullish note, as the average yield contracted by 32bps to 4.6%. Across the benchmark curve, the average yield was flat at the short end but contracted at the mid (-6bps) and long (-71bps) segments as investors bought up the 191DTM (-18bps) and 331DTM (-120bps) bills, respectively. Similarly, the average yield at the OMO segment contracted by 10bps to 7.6%.
The Treasury bond secondary market was also bullish, as the average yield declined by 5bps to 11.5%. Across the benchmark curve, the average yield contracted at the short (-2bps) and mid (-16bps) segments due to demand for the JAN-2022 (-10bps) and MAR-2027 (-65bps) bonds, respectively; the average yield was flat at the long end.
