November 2, 2021/Cordros Report
EQUITIES
The domestic bourse reversed yesterday’s loss following investors’ buying interest in bellwether stock – BUACEMENT (+3.5%). Precisely, the All-Share Index inched higher by 0.1% to 42,013.39 points. Thus, Month-to-Date loss printed -0.1% while the Year-to-Date gain increased to +4.3%.
The total volume traded declined by 15.6% to 318.97 million units, valued at NGN3.28 billion, and exchanged in 5,492 deals. UBA was the most traded stock by volume at 52.58 million units, while ZENITHBANK was the most traded by value at NGN747.64 million.
On sectors, the Banking (-1.5%) and Insurance (-1.5%) indices declined while the Industrial Goods (+1.1%), Oil & Gas (+0.7%) and Consumer Goods (+0.6%) indices recorded gains.
As measured by market breadth, market sentiment was negative (0.3x), as 30 tickers lost relative to 10 gainers. UACN (-9.7%) and FTNCOCOA (-8.7%) topped the losers’ list, while INTBREW (+9.6%) and LASACO (+8.3%) recorded the most significant gains 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 775bps to 5.3% in the absence of significant funding pressures on the system.
The Treasury bond secondary market traded with mixed sentiments, albeit with a bearish bias, as the average yield expanded slightly by 2bps to 5.4%. Across the benchmark curve, the average yield was unchanged at the short and mid-segments but expanded at the long (+4bps) end as market participants sold off the 296DTM (+15bps) bill.
Trading in the Treasury bond secondary market was bullish, as the average yield contracted by 4bps to 11.2%. We highlight that buying activity was spread across the benchmark curve, with the average yield declining at the short (-1bp), mid (-2bps) and long (-7bps) segments following demand for the APR-2023 (-1bp), MAR-2027 (-6bps) and JUL-2045 (-54bps) bonds, respectively.
