August 31, 2021/Cordros Report
EQUITIES
Negative trading persisted in the domestic equities market, as profit-taking on ZENITHBANK (-1.0%) weighed down the bourse. Consequently, the All-Share Index dipped by 0.3% to 39,219.61 points. Accordingly, Month-to-Date and Year-to-Date return printed +1.7% and -2.6%, respectively.
The total volume of trades increased by 41.4% to 425.66 million units, valued at NGN1.97 billion, and exchanged in 4,553 deals. TRANSCORP was the most traded stock by volume at 111.07 million units, while ZENITHBANK was the most traded stock by value at NGN243.56 million.
Sectoral performance was broadly negative as the Consumer Goods (-1.9%), Oil & Gas (-0.4%), Banking (-0.4%) and Insurance (-0.3%) indices declined. On the other hand, the Industrial Goods index was flat.
As measured by market breadth, market sentiment was negative (0.6x), as 25 tickers lost, relative to 15 gainers. NB (-9.9%) and LIVESTOCK (-9.8%) recorded the most significant losses of the day, while TRANSCOHOT (+10.0%) and HONYFLOUR (+9.7%) topped the gainers’ list.
CURRENCY
The naira appreciated by 0.1% and 0.2% to NGN411.08/USD and NGN526.00/USD at the I&E window and parallel market, respectively.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 67bps to 6.5% in the absence of any significant funding pressures on the system.
Trading in the NTB secondary market ended on a bullish note, as the average yield contracted by 15bps to 4.6%. Across the benchmark curve, the average yield contracted at the short (-44bps) end due to demand for the 72DTM (-106bps) bill but was flat at the mid and long segments. Elsewhere, the average yield at the OMO segment expanded by 4bps to 6.1%.
The Treasury bond secondary market turned bearish, as the average yield expanded by 5bps to 11.1%. Across the benchmark curve, the average yield expanded at the short (+13bps), and long (+2bps) ends due to sell-offs of the APR-2023 (+33bps) and MAR-2050 (+7bps) bonds, respectively; the average yield was flat at the mid-segment.
