October 25, 2021/Cordros Report
EQUITIES
The domestic equities market kicked off the week positively, sustaining last week’s bullish performance as investors’ demand for UNILEVER (+6.9%) and FBNH (+2.5%) drove the All-Share Index higher. Precisely, the ASI advanced by 0.1% to 41,814.74 points, with the Month-to-Date and Year-to-Date returns increasing to +4.0% and +3.8%, respectively.
The total volume of trades increased by 32.2% to 674.50 million units, valued at NGN7.59 billion, and exchanged in 5,432 deals. FBNH was the most traded stock by volume and value at 350.54 million units and NGN4.35 billion, respectively.
Analysing by sectors, the Insurance (+1.9%), Consumer Goods (+0.4%), and Oil & Gas (+0.4%) indices recorded gains while the Banking (-0.2%) and Industrial Goods (-0.1%) indices declined.
As measured by market breadth, market sentiment was positive (1.4x), as 27 tickers gained relative to 19 losers. PZ (+9.3%) and MBENEFIT (+7.1%) topped the gainers’ list, while ABBEYBDS (-9.5%) and PRESTIGE (-8.5%) recorded the most significant losses of the day.
CURRENCY
The naira closed flat at NGN415.07/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 325bps to 16.0% in the absence of any significant funding pressures on the system.
Trading in the NTB secondary market was bearish, as the average yield expanded by 15bps to 5.5%. Across the benchmark curve, the average yield was flat at the short and mid segments but expanded at the long (+79bps) end following the introduction of the 339DTM (+6.7%) and 353DTM (+7.2%) bills. Similarly, the average yield at the OMO segment expanded by 3bps to 6.5%.
The Treasury bond secondary market was bullish, as the average yield contracted slightly by 3bps to 11.3%. Across the benchmark curve, the average yield contracted at the short (-4bps), mid (-1bp), and long (-4bps) segments following demand for the MAR-2027 (-20bps), JUL-2030 (-2bps) and MAR-2035 (-7bps) bonds, respectively.
