October 14, 2021/Cordros Report
EQUITIES
The Nigerian equities market maintained positive trading for the third-straight session as sustained buying interest in FBNH (+7.3%) drove the All-Share Index higher. Precisely, the ASI advanced by 0.2% to 41,129.98 points, with the Month-to-Date and Year-to-Date returns increasing to +2.3% and +2.1%, respectively.
The total volume of trades surged by 103.5% to 908.06 million units, valued at NGN10.97 billion, and exchanged in 5,151 deals. FBNH was the most traded stock by volume and value at 602.77 million units and NGN7.11 billion, respectively.
Analysing by sectors, the Insurance (-1.1%) and Banking (-0.8%) indices declined, while the Consumer Goods (+0.2%) and Industrial Goods (+0.2%) indices posted gains; the Oil & Gas index closed flat.
As measured by market breadth, market sentiment was positive (1.5x), as 21 tickers gained relative to 14 losers. CHAMPION (+9.7%) and AFRIPRUD (+7.8%) topped the gainers’ list, while LEARNAFRCA (-10.0%) and UPL (-8.2%) recorded the most significant losses of the day.
CURRENCY
The naira depreciated by 1.7% to NGN422.07/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 325bps to 11.3%, following outflows for net NTB issuances (NGN65.57 billion).
Trading in the NTB secondary market was bullish, as the average yield contracted by 9bps to 5.2%. Across the benchmark curve, the average yield contracted at the short (-29bps), and mid (-10bps) segments due to demand for the 14DTM (-34bps) and 105DTM (-18bps) bills, respectively; the long end was flat. Elsewhere, the average yield at the OMO segment was flat at 6.5%.
The Treasury bond secondary market was quiet as the average yield closed flat at 11.3%. Across the benchmark curve, the average yield expanded slightly at the short (+1bp) end following sell-off of the JAN-2026 (+21bps) bond but was flat at the mid and long segments.
