October 12, 2021/Cordros Report
EQUITIES
The domestic bourse reversed yesterday’s loss following investors’ interests in BUACEMENT (+1.8%) and FBNH (+9.8%). Precisely, the All-Share Index inched higher by 0.5% to 40.897.19 points. Accordingly, the Month-to-Date and Year-to-Date gains increased to +1.7% and +1.6%, respectively.
The total volume of trades increased by 194.7% to 565.88 million units, valued at NGN5.10 billion, and exchanged in 4,253 deals. FBNH was the most traded stock by volume and value at 317.28 million units and NGN3.29 billion, respectively.
Performance across sectors was broadly positive as all sectors under our coverage – Industrial Goods (+3.0%), Insurance (+1.0%), Banking (+1.0%) and Consumer Goods (+0.1%) – save for the Oil & Gas (-0.7%) index recorded gains.
As measured by market breadth, market sentiment was positive (2.2x), as 26 tickers gained relative to 12 losers. CHAMPION (+10.0%) and CORNERST (+9.8%) recorded the most significant gains while CHIPLC (-6.8%) and NEM (-3.8%) topped the losers’ list.
CURRENCY
The naira was flat at NGN414.30/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 517bps to 5.5%, following inflows from OMO maturities (NGN110.00 billion).
The NTB secondary market closed on a bearish note, as the average yield expanded by 4bps to 5.3%. Across the benchmark curve, average yield closed higher at the short (+24bps) and mid (+14bps) segments as market participants sold off the 16DTM (+45bps) and 170DTM (+35bps) bills, respectively. However, it declined at the long (-11bps) end following demand for the 198DTM (-51bps) bill. Elsewhere, the average yield at the OMO segment was unchanged at 6.5%.
Trading in the Treasury bond secondary market was mixed, albeit with a bullish bias, as the average yield pared by 1bp to 11.3%. Across the benchmark curve, average yield expanded slightly at the short (+1bp) end driven by sell pressures on the JAN-2022 (+7bps) bond but contracted at the long (-2bps) end as investors demanded the MAR-2036 (-16bps) bond; the average yield was flat at the mid-segment.
