The overnight lending rate contracted by 300bps to 10.8%, following inflows from FAAC disbursements (NGN407.71 billion).
September 29, 2021/Cordros Report
EQUITIES
Trading in the domestic equities market was negative for most of the day. However, late interest in bellwethers – NESTLE (+6.4%), DANGCEM (+6.5%) and PRESCO (+5.5%) ensured the market ended in the positive territory. Precisely, the benchmark index closed higher by 1.9% to 39,592.29 points – the most significant single-day gain since 4th January (+2.2%). Accordingly, the Month-to-Date gain printed +1.0%, while the Year-to-Date loss moderated to -1.7%.
The total volume of trades declined by 9.9% to 474.37 million units, valued at NGN4.01 billion, and exchanged in 3,547 deals. FBNH was the most traded stock by volume and value at 264.69 million units and NGN2.05 billion, respectively.
On sectors, the Industrial Goods (+3.6%), Consumer Goods (+3.1%) and Banking (+0.8%) indices recorded gains while the Insurance (-2.0%) and Oil & Gas (-0.2%) indices declined.
As measured by market breadth, market sentiment was positive (1.8x), as 24 tickers gained, relative to 13 losers. NNFM (+6.9%) and FBNH (+6.6%) topped the gainers’ list, while MANSARD (-10.0%) and JBERGER (-10.0%) recorded the most significant losses of the day.
CURRENCY
The naira depreciated by 0.1% to NGN414.73/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 300bps to 10.8%, following inflows from FAAC disbursements (NGN407.71 billion).
The NTB secondary market closed with bullish sentiments, as the average yield contracted by 28bps to 5.3%. Across the benchmark curve, average yield contracted at the mid (-79bps) and long (-4bps) segments following investors’ demand for the 183DTM (-126bps) and 211DTM (-56bps) bills, respectively; the short end closed flat. Elsewhere, the average yield at the OMO segment expanded by 3bps to 6.3%.
Trading in the Treasury bond secondary market was mixed, albeit with a bullish tilt, as the average yield contracted by 3bps to 11.1%. Across the benchmark curve, average yield contracted at the short (-8bps) end due to investors’ demand for the JAN-2022 (-38bps) bond but stayed flat at the mid and long segments.
