September 23, 2021/Cordros Report
EQUITIES
The domestic equities market snapped a three-day bearish trading streak as investors’ late interests in FLOURMILL (+1.2%) and PZ (+4.6%) underpinned a +0.1% increase in the All-Share index to 38,874.13 points. Accordingly, Month-to-Date and Year-to-Date losses moderated to -0.9% and -3.5%, respectively.
The total volume of trades decreased by 19.2% to 125.80 million units, valued at NGN1.27 billion, and exchanged in 2,990 deals. MBENEFIT was the most traded stock by volume at 13.72 million units, while GTCO was the most traded stock by value at NGN270.93 million.
On sectors, the Insurance (+0.9%), Oil and Gas (+0.7%) and Consumer Goods (+0.1%) indices gained while the Banking (-0.2%) index declined. The Industrial Goods index closed flat.
As measured by market breadth, market sentiment was positive (1.5x), as 16 tickers gained, relative to 11 losers. NAHCO (+10.0%) and PHARMDEKO (+9.6%) recorded the highest gains, while SOVRENINS (-4.2%) and ETI (-2.8%) topped the losers’ list.
CURRENCY
The naira depreciated by 0.1% to NGN413.68/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 200bps to 16.0%, following inflows from FGN bond coupon payment (NGN19.12 billion).
The NTB secondary market closed flat, as the average yield remained unchanged at 5.5%. Similarly, the average yield at the OMO segment closed flat at 6.4%.
Trading in the Treasury bond secondary market was mixed, albeit with a bearish tilt, as the average yield expanded slightly by 1bp to 11.1%. Across the benchmark curve, average yield expanded at the mid (+6bps) and long (+4bps) segments, as investors sold off the APR-2029 (+17bps) and MAR-2050 (+19bps) bonds, respectively; the short end closed flat.
