October 20, 2021/Cordros Report
EQUITIES
The domestic bourse traded with positive sentiment as buying interest in FBNH (+3.8%) drove the All-Share Index higher. Precisely, the ASI advanced by 0.3% to 41,249.71 points, with the Month-to-Date and Year-to-Date returns increasing to +2.6% and +2.4%, respectively.
The total volume of trades increased by 57.6% to 499.51 million units, valued at NGN5.08 billion, and exchanged in 5,998 deals. FBNH was the most traded stock by volume and value at 147.60 million units and NGN1.76 billion, respectively.
Sectoral performance was broadly negative, as the Oil & Gas (-0.4%), Consumer Goods (-0.2%) and Banking (-0.2%) indices declined. However, the Insurance (+0.6%) index increased while the Industrial Goods (+0.2%) index closed flat.
As measured by market breadth, market sentiment was positive (1.1x), as 19 tickers gained relative to 17 losers. GLAXOSMITH (+6.9%) and NPFMCRFBK (+5.9%) topped the gainers’ list, while PRESTIGE (-8.5%) and ACADEMY (-8.3%) recorded the most significant losses of the day.
CURRENCY
The naira appreciated by 0.2% to NGN414.07/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 50bps to 15.0% in the absence of any significant funding pressures on the system.
Trading in the NTB secondary market was bullish, as the average yield contracted by 20bps to 5.0%. Across the benchmark curve, the average yield was flat at the short and mid segments but contracted at the long (-44bps) end due to demand for the 232DTM (-130bps) bill. Elsewhere, the average yield at the OMO segment was flat at 6.4%.
The Treasury bond secondary market was mixed with bearish sentiment, as the average yield expanded slightly by 1bp to 11.3%. Across the benchmark curve, the average yield expanded at the short (+3bps) end following sell-off of the MAR-2027 (+23bps) bond but was flat at the mid and long segments.
