October 27, 2021/Cordros Report
EQUITIES
Sentiments in the domestic bourse turned negative, as investors sold off FBNH (-6.1%). Precisely, the NGX ASI declined by 0.1% to close at 41,789.59 points. Consequently, the Month-to-Date and Year-to-Date return moderated to +3.9% and +3.8%, respectively.
The total volume of trades decreased by 19.4% to 284.60 million units, valued at NGN3.20 billion, and exchanged in 5,036 deals. FBNH was the most traded stock by volume and value at 75.46 million units and NGN898.01 million, respectively.
Sectoral performance was broadly positive, as the Oil & Gas (+1.7%), Insurance (+1.5%), Banking (+0.5%) and Industrial Goods (+0.1%) indices posted gains while the Consumer Goods index closed flat.
As measured by market breadth, market sentiment was positive (1.6x), as 23 tickers gained relative to 14 losers. AIICO (+9.6%) and UPL (+9.1%) topped the gainers’ list, while GLAXOSMITH (-10.0%) and TRANSCOHOT (-9.9%) recorded the most significant losses of the day.
CURRENCY
The naira was flat at NGN415.07/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 10bps to 15.2% in the absence of any significant funding pressures on the system.
Trading in the NTB secondary market was bullish, as the average yield pared by 2bps to 5.5%. Across the benchmark curve, the average yield was flat at the long end but contracted at the short (-3bps) and mid (-4bps) segments, following investors’ demand for the 92DTM (-12bps) and 106DTM (-9bps) bills, respectively. Elsewhere, the average yield expanded by 1bp at the OMO segment to 6.4%.
The Treasury bond secondary market was bullish, as the average yield contracted slightly by 2bps to 11.3%. Across the benchmark curve, the average yield expanded at the long (+2bps) end as investors sold off the APR-2037 (+12bps) bond; but contracted at the short (-2bps) and mid (-7bps) segments following demand for the JAN-2022 (-10bps) and APR-2029 (-13bps) bonds, respectively.
