November 15, 2021/Cordros Report
EQUITIES
Trading in the local bourse kicked off the week with bearish sentiments as investors took profit off UBA (-3.0%) and MTNN (-0.5%). Thus, the benchmark index declined by 0.1% to 43,230.34 points. Accordingly, the Month-to-Date and Year-to-Date gains moderated to +2.8% and +7.4%, respectively.
The total volume traded decreased by 6.8% to 293.43 million units, valued at NGN4.29 billion, and exchanged in 4,239.00 deals. FBNH was the most traded stock by volume and value at 101.22 million units and NGN1.24 billion, respectively.
Analysing by sectors, the Oil & Gas (+0.1%), Insurance (+0.1%), and Consumer Goods (+0.1%) indices recorded gains while the Banking (-0.4%) index declined. The Industrial Goods index closed flat.
As measured by market breadth, market sentiment was positive (1.3x), as 18 tickers gained relative to 14 losers. CUTIX (+9.9%) and LIVESTOCK (+9.5%) topped the gainers’ list, while VERITASKAP (-8.7%) and FTNCOCOA (-6.8%) recorded the most significant losses of the day.
CURRENCY
The naira was flat at NGN415.10/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 150bps to 13.8% in the absence of any significant funding pressures on the system.
The NTB secondary market traded quietly, albeit with bullish bias, as the average yield pared by 1bp to 5.2%. Across the benchmark curve, the average yield was flat at the short and mid segments but contracted at the long (-1bp) end as investors demanded the 283DTM (-6bps) bills. Similarly, the average yield at the OMO segment contracted by 11bps to 5.5%.
Trading in the Treasury bond secondary market was mixed, albeit with a bearish bias, as the average yield expanded slightly by 1bp to 11.2%. Across the benchmark curve, the average yield contracted at the short (-1bp) end following demand for the APR-2023 (-2bps) bond but expanded at the mid (+1bp) and long (+1bp) segments due to sell-offs of the JUL-2030 (+6bps) and APR-2037 (+5bps) bonds, respectively.
