November 10, 2021/Cordros Report
EQUITIES
The Nigerian equities market snapped the two-day bullish run as investors took profit off WAPCO (-3.9%) and ZENITHBANK (-1.2%). Thus, the benchmark index declined by 0.1% to 43,707.30 points. Accordingly, the Month-to-Date and Year-to-Date gains moderated to +4.0% and +8.5%, respectively.
The total volume traded decreased by 3.6% to 270.70 million units, valued at NGN5.63 billion, and exchanged in 3,861 deals. FLOURMILL was the most traded stock by volume at 50.60 million units, while MTNN was the most traded stock by value at NGN1.49 billion.
Analysing by sectors, the Banking (-1.0%), Insurance (-0.3%), Industrial Goods (-0.3%), and Oil & Gas (-0.2%) indices recorded losses while the Consumer Goods (+0.1%) index gained.
As measured by market breadth, market sentiment was negative (0.9x), as 18 tickers lost relative to 16 gainers. REDSTAREX (-9.9%) and PHARMDEKO (-9.8%) topped the losers’ list, while NEIMETH (+10.0%) and CHAMS (+9.1%) recorded the most significant gains of the day.
CURRENCY
The naira appreciated by 0.1% to NGN414.73/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 133bps to 2.0% in the absence of any significant funding pressures on the system.
Trading in the NTB secondary market was bullish, as the average yield contracted by 11bps to 5.2%. Across the benchmark curve, the average yield contracted at the short (-7bps), mid (-12bps) and long (-12bps) segments as investors demanded for the 15DTM (-18bps), 183DTM (-38bps) and 197DTM (-95bps) bills, respectively. Elsewhere, the average yield at the OMO segment expanded by 3bps to 6.0%.
The Treasury bond secondary market was mixed, albeit with a bullish bias, as the average yield pared by 1bp to 11.2%. Across the benchmark curve, the average yield contracted at the short (-1bp) and long (-2bps) ends following demand for the JAN-2022 (-3bps) and APR-2049 (-12bps) bonds but was flat at the mid-segment.
