November 9, 2021/Cordros Report
EQUITIES
The domestic bourse sustained yesterday’s positive trading, as the All-Share Index advanced by 1.1% to 43,730.55 points. Today’s performance was supported by sustained buying interest in large caps — MTNN (+3.9%) and AIRTELAFRI (+2.6%). Consequently, the Month-to-Date and Year-to-Date gains increased to +4.0% and +8.6%, respectively.
The total volume of trades decreased by 35.5% to 280.71 million units, valued at NGN3.48 billion, and exchanged in 4,342 deals. STERLNBANK was the most traded stock by volume at 18.31 million units, while MTNN was the most traded stock by value at NGN1.08 billion.
Across sectors, gains in the Industrial Goods (+0.2%), Consumer Goods (+0.2%), Oil & Gas (+0.1%), and Banking (+0.1%) indices reflected the overall market performance. However, the Insurance (-0.3%) index declined.
As measured by market breadth, market sentiment was positive (1.5x) as 24 tickers gained relative to 16 losers. ABCTRANS (+10.0%) and FTNCOCOA (+10.0%) recorded the most significant gains of the day while BERGER (-9.5%) and CAVERTON (-9.1%) topped the losers’ list.
CURRENCY
The naira depreciated by 0.1% to NGN415.07/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 192bps to 3.3% in the absence of any significant funding pressures on the system.
The NTB secondary market was quiet, though with a bearish bias, as the average yield expanded slightly by 1bp to 5.3%. Across the benchmark curve, the average yield was flat at the short and mid-segments but expanded at the long (+1bp) end as market participants sold off the 303DTM (+14bps) bill. Elsewhere, the average yield contracted by 7bps at the OMO segment to 6.0%.
Trading in the Treasury bond secondary market was bearish, as the average yield expanded by 4bps to 11.3%. Across the benchmark curve, the average yield expanded at the short (+10bps) and long (+2bps) ends as investors sold off the APR-2023 (+51bps) and MAR-2050 (+6bps) bonds, respectively; the mid-segment was unchanged.
