September 21, 2021/Cordros Report
EQUITIES
The Nigerian equities market sustained yesterday’s loss as investors sustained profit-taking activities on select Tier 1 banking stocks – ZENITHBANK (-2.3%), GTCO (-0.7%) and ACCESS (-1.1%). Thus, the All-Share Index settled lower by 0.1% at 38,873.85 points. Accordingly, Month-to-Date and Year-to-Date losses increased to -0.9% and -3.5%, respectively.
The total volume of trades declined by 3.4% to 184.44 million units, valued at NGN2.34 billion, and exchanged in 3,809 deals. UBA was the most traded stock by volume at 38.99 million units, while GTCO was the most traded stock by value at NGN517.86 million.
On sectors, the Industrial Goods (+0.1%), Insurance (+0.1%) and Oil & Gas (+0.1%) indices recorded gains, the Banking (-1.0%) index declined while the Consumer Goods index closed flat.
As measured by market breadth, market sentiment was positive (1.3x), as 15 tickers gained, relative to 12 losers. MRS (+9.8%) and VERITASKAP (+9.5%) recorded the highest gains, while NEIMETH (-7.9%) and CHAMS (-4.4%) topped the losers’ list.
CURRENCY
The naira appreciated by 0.1% to NGN413.28/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 100bps to 16.3%, in the absence of any significant inflows into the system.
The NTB secondary market was bullish, as the average yield contracted by 4bps to 5.5%. Across the benchmark curve, average yield declined at the long (-9bps) end due to demand for the 338DTM (-78bps) bill but stayed flat at the short and mid segments. Similarly, the average yield at the OMO segment pared by 1bp to 6.3%.
Trading in the Treasury bond secondary market was mixed, as investors anticipate fresh supply at tomorrow’s PMA. Thus, the average yield was unchanged at 11.2%. Across the benchmark curve, average yield expanded at the long (+1bp), as investors sold off the MAR-2035 (+10bps) bond, but stayed flat at the short and mid segments.
