September 6, 2021/Cordros Report
EQUITIES
The domestic bourse started the week’s trading with mixed sentiments albeit with a bearish tilt, as profit-taking activities witnessed in STANBIC (-1.4%), UBA (-1.9%), and FLOURMILL (-4.2%) undermined the market’s performance. Thus, the All-Share Index traded flat at 39,252.98 points. Accordingly, Month-to-Date and Year-to-Date returns printed +0.1% and -2.5%, respectively.
The total volume of trades increased by 27.5% to 245.33 million units, valued at NGN1.38 billion, and exchanged in 3,989 deals. ACCESS was the most traded stock by volume and value at 30.52 million units and NGN282.14 million, respectively.
Performance across sectors was mixed, as the Banking (+0.5%) and Oil & Gas (+0.3%) indices gained, while the Consumer Goods (-0.4%) index declined. The Insurance and Industrial goods indices closed flat.
As measured by market breadth, market sentiment was positive (1.3x), as 19 tickers gained, relative to 15 losers. LINKASSURE (+8.9%) and FTNCOCOA (+8.9%) topped the gainers’ list while GLAXOSMITH (-9.6%) and CHIPLC (-8.6%) recorded the most significant losses of the day.
CURRENCY
The naira appreciated by 0.1% to NGN411.13/USD at the I&E window but depreciated by 0.4% to NGN532/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 500bps to 8.5% in the absence of any significant funding pressures on the system.
The NTB secondary market traded flat, as the average yield was unchanged at 4.6%. Similarly, the average yield at the OMO segment was flat at 6.1%.
The Treasury bond secondary market was mixed, as the average yield closed flat at 11.0%. Across the benchmark curve, the average yield expanded at the short (+4bp) end as investors sold off the JAN-2026 (+14bps) bond. Conversely, the average yield contracted at the mid (-3pbs) and long (-1bp) segments due to demand for the JUL-2034 (-4bps) and MAR-2036 (-6bps) bonds, respectively.
