October 6, 2021/Cordros Report
EQUITIES
The Nigerian equities market traded positively for the third-straight session as bargain buying in FBNH (+7.8%) drove the All-Share Index higher. Precisely, the ASI advanced by 0.1% to 40,765.20 points, with the Month-to-Date and Year-to-Date returns increasing to +3.9% and +1.2%, respectively.
The total volume of trades declined by 7.5% to 400.65 million units, valued at NGN3.48 billion, and exchanged in 5,145 deals. FBNH was the most traded stock by volume and value at 108.74 million units and NGN1.07 billion, respectively.
Analysing by sectors, the Insurance (-0.7%), Consumer Goods (-0.2%) and Oil & Gas indices declined, while the Banking (+0.1%) and Industrial Goods indices posted gains.
As measured by market breadth, market sentiment was negative (0.9x), as 19 tickers lost relative to 18 gainers. PHARMDEKO (-6.0%) and ABCTRANS (-5.7%) topped the losers’ list while FBNH (+7.8%) and UPL (+7.4%) recorded the most significant gains.
CURRENCY
The naira depreciated by 0.1% to NGN414.73/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 92bps to 7.8%, in the absence of any significant inflows in the system.
Trading in the NTB secondary market was mixed, albeit with bullish bias, as the average yield contracted by 3bps to 5.1%. Across the benchmark curve, the average yield was flat at the short and mid segments but contracted at the long (-6bps) end due to demand for the 309DTM (-33bps) bill. Elsewhere, the average yield at the OMO segment advanced by 7bps to 6.4%.
The Treasury bond secondary market was also mixed with a bearish tilt, as the average yield expanded by 4bps to 11.1%. Across the benchmark curve, the average yield expanded at the short (+14bps) end following sell-off of the APR-2023 (+41bps) bond. Conversely, the average yield contracted at the long end (-3bps) following demand for the MAR-2036 (-11bps) bond; the mid segment was flat.
