October 18, 2021/Cordros Report
EQUITIES
Trading in the domestic bourse started the week with bearish sentiments as profit-taking activities in bellwether stocks – MTNN (-2.9%) and NESTLE (-5.1%) dragged the All-Share index lower. Precisely, the NGX ASI declined by 0.7% to close at 41,144.67 points. Accordingly, the Month-to-Date and Year-to-Date return settled at +2.3% and +2.2%, respectively.
The total volume of trades decreased by 56.5% to 317.05 million units, valued at NGN3.76 billion, and exchanged in 5,721 deals. FBNH was the most traded stock by volume and value at 67.61 million units and NGN832.80 million, respectively.
Analysing by sectors, the Banking (+0.4%) and Industrial Goods (+0.3%) recorded gains while the Consumer Goods (-2.5%), Insurance (-1.7%), and Oil & Gas (-0.3%) indices declined.
As measured by market breadth, market sentiment was negative (0.9x), as 20 tickers lost relative to 18 gainers. MAYBAKER (-8.0%) and ROYALEX (-7.8%) topped the losers’ list, while IKEJAHOTEL (+9.5%) and CUSTODIAN (+7.3%) recorded the most significant gains of the day.
CURRENCY
The naira appreciated by 0.1% to NGN414.73/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 450bps to 15.5% in the absence of any significant funding pressures on the system.
Trading at the NTB secondary market was quiet, as the average yield stayed flat at 5.2%. Elsewhere, the average yield at the OMO segment contracted by 8bps to 6.4%.
The Treasury bond secondary market was bullish, as the average yield contracted by 3bps to 11.2%. Across the benchmark curve, the average yield contracted at the short (-1bps), mid (-5bps), and long (-4bps) segments following investor’s demand for the APR-2023 (-3bps), MAR-2027 (-29bps), and APR-2049 (-33bps) bonds respectively.
