October 11, 2021/Cordros Report
EQUITIES
The Nigerian equities market snapped last week’s bullish performance as profit-taking activities witnessed in NB (-6.1%) and BUACMENT (-2.5%) undermined the market’s performance. Thus, the All-Share Index declined by 0.4% to 40,714.22. Accordingly, the Month-to-Date and Year-to-Date returns moderated to +1.2% and +1.1%, respectively.
The total volume of trades declined by 37.9% to 191.31 million units, valued at NGN2.59 billion, and exchanged in 4,395 deals. FBNH was the most traded stock by volume at 24.15 million units, while BUACEMENT was the most traded stock by value at NGN359.35 million.
Sectoral performance was mixed following declines in the Consumer Goods (-1.0%) and Industrial Goods (-0.6%) indices and gains in the Banking (+0.8%) and Insurance (+0.4%) indices posted gains; the Oil & Gas index was flat.
As measured by market breadth, market sentiment was negative (0.9x), as 17 tickers lost relative to 16 gainers. SOVRENINS (-8.3%) and NB (-6.1%) topped the losers’ list while NEM (+10.0%) and ETI (+9.5%) recorded the most significant gains.
CURRENCY
The naira traded flat at NGN414.40/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 383bps to 10.7%, in the absence of any significant funding pressures on the system.
Trading in the NTB secondary market was mixed, albeit with bullish bias, as the average yield pared by 2bps to 5.3%. Across the benchmark curve, the average yield was flat at the short and mid segments but contracted at the long (-4bps) end due to demand for the 262DTM (-65bps) bill. Elsewhere, the average yield at the OMO segment was flat at 6.5%.
The Treasury bond secondary market was also mixed, but with bearish bias, as the average yield expanded slightly by 1bp to 11.3%. Across the benchmark curve, the average yield was flat at the short and mid segments but expanded at the long (+3bps) end following sell-off of the APR-2049 (+11bps) bond.
