November 8, 2021/Cordros Report
EQUITIES
Trading in the Nigerian equities started the week with bullish sentiments, as investor’s significant buying activities in bellwether stocks – MTNN (+9.2%) and AIRTELAFRI (+10.0%) drove the benchmark index higher by 2.9% to 43,246.87 points – the highest single-day gain since 12th November 2020 (+6.2%). Accordingly, Month-to-Date and Year-to-Date gains increased to +2.9% and +7.4%, respectively.
The total volume of trades increased by 57.1% to 453.25 million units, valued at NGN5.01 billion, and exchanged in 5,140 deals. STERLNBANK was the most traded stock by volume at 81.23 million units, while ZENITHBANK was the most traded stock by value at NGN797.35 million.
On sectors, the Insurance (-1.4%), Oil and Gas (-0.6%), and Banking (-0.1%) indices declined, while the Consumer Goods (+0.3%) and Industrial Goods (+0.1%) indices recorded gains.
As measured by market breadth, market sentiment was negative (0.7x), as 25 tickers declined, relative to 17 gainers. CONOIL (-9.8%) and CWG (-9.7%) topped the losers’ list, while AIRTELAFRI (+10.0%) and REDSTAREX (+9.9%) recorded the most significant gains of the day.
CURRENCY
The naira was flat at NGN414.45/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 713bps to 5.3% in the absence of any significant funding pressure on the system.
The NTB secondary market traded with mixed sentiments, albeit with a bullish tilt, as the average yield pared by 1bp to 5.3%. Across the benchmark curve, the average yield was unchanged at the short and mid segments but contracted at the long (-1bp) end following market participants’ demand for the 290DTM (-3bps) bill. Similarly, the average yield at the OMO segment remained flat at 6.1%.
Trading in the Treasury bond secondary market was also mixed with a bullish bias, as the average yield contracted slightly by 1bp to 11.2%. Across the benchmark curve, average yield contracted at the short (-1bp) and long (-1bp) ends due to investors’ demand for the APR-2023 (-2bps) and APR-2037 (-2bps) bonds, respectively; the mid-segment closed flat.
