August 30, 2021/Cordros Report
EQUITIES
Trading in the domestic bourse started the week with bearish sentiments, as sell-off of bellwether stock – DANGCEM (-2.6%) drove the benchmark index 0.4% lower to 39,326.67 points. Accordingly, Month-to-Date gain moderated to +2.0%, while Year-to-Date loss increased to -2.3%.
The total volume of trades increased by 38.0% to 301.01 million units, valued at NGN1.54 billion, and exchanged in 4,715 deals. TRANSCORP was the most traded stock by volume at 51.69 million units, while ZENITHBANK was the most traded stock by value at NGN220.26 million.
On sectors, the Industrial Goods (-1.4%), Oil and Gas (-1.2%) and Banking (-0.2%) indices declined, while the Consumer Goods (+1.2%) and Insurance (+0.8%) indices recorded gains.
As measured by market breadth, market sentiment was positive (1.1x), as 19 tickers gained, relative to 18 losers. HONYFLOUR (+9.9%) and ABCTRANS (+9.1%) topped the gainers’ list, while CHAMPION (-7.7%) and ETERNA (-7.2%) recorded the most significant losses of the day.
CURRENCY
The naira appreciated by 0.1% to NGN411.63/USD at the I&E window but depreciated by 0.6% to NGN527.00/USD at the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 133bps to 7.2%, in the absence of any significant funding pressure on the system.
The NTB secondary market closed with bullish sentiments, as the average yield declined by 22bps to 4.7%. Across the benchmark curve, average yield contracted at the mid (-67bps) and long (+20bps) segments following market participants’ demand for the 150DTM (-103bps) and 192DTM (-63bps) bills, respectively; but stayed flat at the short end. Elsewhere, the average yield at the OMO segment remained unchanged at 6.0%.
Trading in the Treasury bond secondary market was bullish, as the average yield contracted by 4bps to 11.0%. Across the benchmark curve, average yield contracted at the short (-11bps) and long (-2bps) ends due to investors’ demand for the JAN-2022 (-49bps) and MAR-2036 (-8bps) bonds, respectively; the mid-segment closed flat.
