August 25, 2021/Cordros Report
EQUITIES
Market Academics of Nigeria (ACMAN) Dr Mohammed Hussein, Assistant Secretary ACMAN Dr Taibat Atoyebi, ACMAN 1st Vice President, Prof Seth. Image Credit: SEC Nigeria
The domestic bourse traded with mixed sentiments albeit with a bearish tilt, as profit-taking activities in DANGSUGAR (-2.8%), GTCO (-0.7%) and ZENITHBANK (-0.4%) undermined the market’s performance. Thus, the All-Share Index traded flat at 39,449.82 points. Accordingly, Month-to-Date and Year-to-Date returns printed +2.3% and – 2.0%, respectively.
The total volume of trades increased by 0.8% to 198.33 million units, valued at NGN1.06 billion, and exchanged in 3,336 deals. SOVRENINS was the most traded stock by volume at 48.38 million units, while MTNN was the most traded stock by value at NGN155.24 million.
Sectoral performance was broadly negative as the Insurance (-0.5%), Consumer Goods (-0.1%), Banking (-0.1%) and Oil and Gas (-0.1%) indices closed in the red. The Industrial Goods index was flat.
As measured by market breadth, market sentiment was negative (0.9x), as 18 tickers lost, relative to 16 gainers. ACADEMY (-9.8%) and PHARMDEKO (-9.5%) topped the losers’ list, while CAPHOTEL (+10.0%) and ETERNA (+10.0%) recorded the most significant gains of the day.
CURRENCY
The naira depreciated by 0.2% to NGN412.00/USD at the I&E window but was flat at NGN521.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 242bps to 13.3% in the absence of any significant funding pressure on the system.
Trading in the NTB secondary market ended on a bearish note, as the average yield expanded by 16bps to 5.0%. Across the benchmark curve, the average yield contracted at the short (-18bps) end due to demand for the 92DTM (-129bps) bill. Conversely, the average yield expanded at the mid (+47bps) and long (+27bps) segments due to selloffs of the 197DTM (+64bps) and 246DTM (+83bps) bills, respectively. Similarly, the average yield at the OMO segment expanded by 5bps to 6.0%.
The Treasury bond secondary market was bullish, as the average yield contracted by 5bps to 11.0%. Across the benchmark curve, the average yield was flat at the short end but declined at the mid (-6bps) and long (-7bps) segments due to demand for the FEB-2028 (-9bps) and JUL-2045 (-13bps) bonds, respectively.
