October 7, 2021/Cordros Report
EQUITIES
The domestic bourse continued to trade with bullish sentiments, as late interests in UBA (+1.9%) and ACCESS (+1.1%) led the All-Share Index to close 0.2% higher at 40,829.15 points. Consequently, Month-to-Date and Year-to-Date gains increased to +1.5% and +1.4%, respectively.
The total volume of trades increased by 102.7% to 812.30 million units, valued at NGN10.58 billion, and exchanged in 4,863 deals. FBNH was the most traded stock by volume and value at 605.01 million units and NGN8.90 billion, respectively.
On sectors, the Banking (+0.7%), Industrial Goods (+0.1%), and Consumer Goods (+0.1%) indices recorded gains, while the Insurance (-1.2%) index declined. The Oil & Gas index closed flat.
As measured by market breadth, market sentiment was positive (1.2x), as 23 tickers gained, relative to 20 losers. UPL (+9.9%) and PRESCO (+5.9%) recorded the most significant gains of the day, while BOCGAS (-9.9%) and CAVERTON (-9.7%) topped the losers’ list.
CURRENCY
The naira was flat at NGN414.67/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 625bps to 14.0% in the absence of significant inflows into the system.
The NTB secondary market continued trading with mixed sentiments, albeit with bullish bias, as the average yield contracted by 3bps to 5.1%. Across the benchmark curve, the average yield was unchanged at the short and mid segments but declined at the long (-6bps) end as investors bought up the 336DTM (-50bps) bill. Elsewhere, the average yield at the OMO segment expanded by 5bps to 6.4%.
Trading in the Treasury bond secondary market was bearish, as the average yield expanded by 14bps to 11.3%. Across the benchmark curve, average yield closed higher at the short (+19bps) and mid (+33bps) segments as investors sold off the JAN-2026 (+49bps) and MAR-2027 (+70bps) bonds, respectively; the average yield pared at the long (-1bps) end due to the demand for the MAR-2050 (-14bps) bond.
