September 2, 2021/Cordros Report
EQUITIES
The equities market snapped a three-day losing streak as bargain buying in DANGCEM (+0.8%) and ACCESS (+2.8%) underpinned a +0.2% increase in the All-Share index to 39,252.19 points. Accordingly, Month-to-Date and Year-to-Date return moderated to +0.1% and -2.5%, respectively.
The total volume of trades increased by 44.9% to 245.33 million units, valued at NGN1.94 billion, and exchanged in 3,848 deals. ACCESS was the most traded stock by volume and value at 51.07 million units and NGN471.19 million, respectively.
Sectoral performance was broadly positive as three of our coverage indices – Insurance (+1.1%), Industrial Goods (+0.4%), and Banking (+0.1%) indices recorded gains. Meanwhile, the Oil & Gas (-1.2%) and Consumer Goods (-0.1%) declined.
As measured by market breadth, market sentiment was negative (0.9x), as 17 tickers lost, relative to 16 gainers. UNITYBNK (-8.6%) and OANDO (-7.0%) recorded the most significant losses of the day, while CHAMS (+4.8%) and PRESTIGE (+4.4%) topped the gainers’ list.
CURRENCY
The naira was flat at NGN411.67/USD at the I&E window but depreciated by 0.4% to NGN530.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 17bps to 4.8% 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 6bps to 4.5%. Across the benchmark curve, the average yield contracted at the short (-4bps) and mid (-17bps) segments due to demand for the 84DTM (-10bps) and 133DTM (-85bps) bills but was flat at the long end. Elsewhere, the average yield at the OMO segment was flat at 6.1%.
The Treasury bond secondary market was also bullish, as the average yield contracted by 3bps to 11.0%. Across the benchmark curve, the average yield contracted at the short (-1bp), mid (-8bps), and long (-1bp) segments due to demand for the JAN-2022 (-3bps), FEB-2028 (-15bps) and MAR-2035 (-35bps) bonds, respectively.
