September 9, 2021/Cordros Report
EQUITIES
The Nigerian equities market traded marginally lower today as sustained sell-offs of banking stocks triggered a 1bp decline in the All-Share Index to 39,201.33 points. Precisely, ZENITHBANK (-0.8%) and STANBIC (-0.5%) were at the brunt of today’s sell-offs. Consequently, Month-to-Date and Year-to-Date losses printed -0.1% and -2.7%, respectively.
The total volume of trades increased by 3.2% to 350.53 million units, valued at NGN3.35 billion, and exchanged in 3,523 deals. FBNH was the most traded stock by volume and value at 97.73 million units and NGN729.64 million, respectively.
On sectors, the Oil & Gas (+0.6%) and Consumer Goods (+0.1%) indices recorded gains while the Insurance (-1.7%) index declined. Elsewhere, the Banking and Industrial Goods indices closed flat.
As measured by market breadth, market sentiment was negative (0.5x), as 19 tickers lost, relative to 9 gainers. CORNERST (-7.7%) and AIICO (-6.9%) recorded the most significant losses of the day, while CHAMS (+4.8%) and UBA (+4.7%) topped the gainers’ list.
CURRENCY
The naira stayed flat at NGN411.67/USD at the I&E window but depreciated by 0.9% to NGN540.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 367bps to 13.0% amid funding pressures from net NTB issuances (NGN71.34 billion).
The NTB secondary market was bearish, as the addition of new bills from yesterday’s primary auction led the average yield to expand by 11bps to 4.8%. Across the benchmark curve, average yield was flat at the short and mid segments, but contracted at the long (-16bps) end following demand for the 245DTM (-108bps) bill. Elsewhere, the average yield at the OMO segment expanded by 8bps to 6.2%.
Trading in the Treasury bond secondary market was mixed, albeit with bullish bias, as the average yield contracted by 3bps to 11.0%. Across the benchmark curve, average yield contracted at the short (-9bps) end due to investors’ demand for the APR-2023 (-43bps) bond, but was unchanged at the mid and long segments.
