September 7, 2021/Cordros Report
EQUITIES
Mixed trading persisted in the Nigerian equities market for most of the day, despite profit-taking activities in some banking stocks – GTCO (-0.9%), ETI (-4.6%), and UBA (-4.2%). Thus, the All-Share Index was unchanged at 39,251.29 points. Accordingly, Month-to-Date and Year-to-Date returns printed +0.1% and -2.5%, respectively.
The total volume of trades increased by 68.7% to 355.94 million units, valued at NGN2.87 billion, and exchanged in 4,241 deals. FBNH was the most traded stock by volume at 92.29 million units, while ACCESS was the most traded stock by value at NGN711.91 million.
Analysing by sectors, the Oil & Gas (+1.0%) and Consumer Goods (+0.5%) indices recorded gains while the Insurance (-0.9%) and Banking (-0.3%) indices declined. The Industrial Goods index closed flat.
As measured by market breadth, market sentiment was negative (0.7x), as 20 tickers lost, relative to 14 gainers. CORNERST (-8.8%) and UNIVINSURE (-4.8%) recorded the highest losses, while UCAP (+8.0%) and INTBREW (+7.5%) topped the gainers’ list.
CURRENCY
The naira appreciated by 0.1% to NGN410.67/USD at the I&E window but stayed flat at NGN532.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 125bps to 7.3%, following inflows from OMO maturities (NGN119.07 billion).
The NTB secondary market closed with bearish sentiments, as the average yield expanded by 9bps to 4.7%. Across the benchmark curve, average yield expanded at the short (+16bps) and mid (+30bps) segments following sell-offs of the 79DTM (+32bps) and 142DTM (+61bps) bills, respectively. Conversely, the average yield contracted at the long (-9bps) end due to demand for the 205DTM (-46bps) bill. Elsewhere, the average yield at the OMO segment closed flat.
Trading in the Treasury bond secondary market was also bearish, as the average yield expanded by 2bps to 11.0%. Across the benchmark curve, average yield expanded at the short (+2bps), mid (+2bps) and long (+2bps) segments as investors sold off the JAN-2022 (+6bps), JUL-2030 (+6bps) and MAR-2036 (+18bps) bonds, respectively.
