August 26, 2021/Cordros Report
EQUITIES
The Nigerian equities market traded positively, driven by investors’ interest in FBNH (+1.4%) and PRESCO (+0.6%). Consequently, the All-Share Index edged up by 0.1% to close at 39,477.18 points. Accordingly, the Month-to-Date gain increased to +2.4%, while the Year-to-Date loss moderated to -2.0%.
The total volume of trades decreased by 6.1% to 186.33 million units, valued at NGN1.79 billion, and exchanged in 3.595 deals. SOVERNINS was the most traded stock by volume at 19.67 million units, while MTNN was the most traded stock by value at NGN496.68 million.
Analysing by sectors, the Insurance (+2.3%), Oil & Gas (+0.2%) and Banking (+0.1%) indices recorded gains while the Consumer Goods and Industrial Goods indices closed flat.
As measured by market breadth, market sentiment was positive (2.4x), as 26 tickers gained, relative to 11 losers. ETERNA (+10.0%) and AIICO (+8.4%) recorded the most significant gains of the day, while IKEJAHOTEL (-10.0%) and SCOA (-9.4%) topped the losers’ list.
CURRENCY
The naira appreciated by 0.3% to NGN410.88/USD at the I&E window but depreciated by 0.2% to NGN522.00/USD at the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 333bps to 10.0%, despite funding pressures from net NTB issuances (NGN150.13 billion).
The NTB secondary market closed was flat, as the average yield remains unchanged at 5.0%. Elsewhere, the average yield at the OMO segment expanded by 5bps to 6.0%.
Trading in the Treasury bond secondary market was bearish, as the average yield expanded by 6bps to 11.1%. Across the benchmark curve, average yield expanded at the short (+4bps), mid (+5bps) and long (+7bps) segments as investors sold off the JAN-2026 (+19bps), FEB-2028 (+9bps) and MAR-2035 (+20bps) bonds, respectively.
