September 28, 2021/Cordros Report
EQUITIES
The Nigerian equities market traded with mixed sentiments as losses in ZENITHBANK (-0.6%) offset gains in GTCO (+0.4%). Thus, the All-Share Index traded flat at 38,858.99 points, with the Month-to-Date and Year-to-Date returns unchanged at -0.9% and -3.5%, respectively.
The total volume of trades surged by 277.4% to 526.30 million units, valued at NGN3.04 billion, and exchanged in 3,535 deals. HONYFLOUR was the most traded stock by volume and value at 402.18 million units and NGN1.53 billion, respectively.
Sectoral performance was mixed, as the Insurance (-3.4%) and Banking (-0.3%) indices declined, while the Consumer Goods (+0.1%) indices posted gains. Elsewhere, the Oil & Gas and Industrial Goods indices closed flat.
As measured by market breadth, market sentiment was flat (1.0x), as an equal number of tickers (13) recorded gains and declines. WEMABANK (+5.1%) and FLOURMILL (+1.9%) recorded the most significant gains, while MANSARD (-9.7%) and AFRIPRUD (-8.6%) topped the losers’ list.
CURRENCY
The naira appreciated by 0.1% to NGN414.50/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 225bps to 13.8% in the absence of any significant funding pressures on the system.
Trading in the NTB secondary market was bullish, as the average yield contracted by 4bps to 5.6%. Across the benchmark curve, the average yield stayed flat at the short and mid segment but contracted at the long (-9bps) end due to demand for the 345DTM (-80bps) bill. Similarly, the average yield at the OMO segment declined by 15bps to 6.3%.
The Treasury bond secondary market turned bearish, as the average yield expanded by 7bps to 11.1%. Across the benchmark curve, the average yield expanded at the short (+10bps), mid (+13bps) and long (+2bps) segments following sell-offs of the MAR-2027 (+31bps), FEB-2028 (+33bps) and MAR-2050 bonds, respectively.
