September 22, 2021/Cordros Report
EQUITIES
The bears continued to dominate on the local bourse as investors sold off ACCESS (-3.4%). Consequently, the NGX ASI shed 0.3% to close at 38,852.69 points. Thus, the Month-to-Date and Year-to-Date losses increased to -0.9% and -3.5%, respectively.
The total volume of trades decreased by 15.5% to 155.77 million units, valued at NGN1.51 billion, and exchanged in 3,256 deals. UNIVINSURE was the most traded stock by volume at 19.04 million units, while GTCO was the most traded stock by value at NGN271.26 million.
Performance across sectors was mixed as the Insurance (+1.2%) and Oil & Gas (+0.5%) indices posted gains, while the Banking (-0.8%) index declined. The Industrial Goods and Consumer Goods indices closed flat.
As measured by market breadth, market sentiment was negative (0.6x), as 16 tickers lost relative to 12 gainers. VERITASKAP (-8.7%) and UCAP (-5.0%) topped the losers’ list, while TRANSCOHOT (+10.0%) and PHARMDEKO (+9.9%) recorded the most significant gains of the day.
CURRENCY
The naira was flat at NGN413.18/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 175bps to 18.0% in the absence of any significant inflows in the system.
The NTB secondary market closed flat, as the average yield was unchanged at 5.5%. Elsewhere, the average yield at the OMO segment expanded by 9bps to 6.4%.
Trading in the Treasury bond secondary market ended on a bullish note, as the average yield contracted by 7bps to 11.1%. Across the benchmark curve, the average yield contracted at the short (-15bps) and long (-3bp) ends following demand for the MAR-2027 (-61bps) and APR-2049 (-21bps) bonds; the mid-segment was flat. At the auction, the DMO offered instruments worth NGN150.00 billion to investors through re-openings of the 13.98% FGN FEB 2028 (Bid-to-offer: 1.1x; Stop rate: 11.60%), 12.40% MAR 2036 (Bid-to-offer: 2.5x; Stop rate: 12.75%) and 12.98% FGN MAR 2050 (Bid-to-offer: 3.1x; Stop rate: 13.00%) with a total subscription of NGN334.32 billion recorded.
