November 16, 2021/Cordros Report
EQUITIES
Exchange Commission Mr Frank Aul, Executive Commissioner Corporate Services SEC Mr Ibrahim Boyi and Director General SEC Mr Lamido Yuguda during SEC Budget Defence before the Senate Committee on Capital Market at the National Assembly Abuja yesterday 16\11\21. Image Credit: SEC Nigeria
The Nigerian equities market reversed yesterday’s loss as investors’ interest in AIRTELAFRI (+4.4%) drove the NGX ASI higher by 0.5% to 43,444.20 points. Accordingly, the Month-to-Date and Year-to-Date gains increased to +3.3% and +7.9%, respectively.
The total volume of trades increased by 44.4% to 423.83 million units, valued at NGN11.65 billion, and exchanged in 4,181 deals. FBNH was the most traded stock by volume at 223.58 million units, while NESTLE was the most traded stock by value at NGN5.64 billion.
On sectors, the Oil & Gas (-2.5%) and Consumer Goods (-0.4%) indices declined while the Insurance (+0.4%) and Banking (+0.1%) indices recorded gains. The Industrial Goods index closed flat.
As measured by market breadth, market sentiment was mixed (1.0x), as an equal number of tickers (17) gained and lost. CUTIX (+8.3%) and CORNERST (+7.7%) most significant gains of the day, while TOTAL (-10.0%) and MBENEFIT (-6.9%) topped the losers’ list.
CURRENCY
The naira was flat at NGN415.10/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 25bps to 14.0%, following significant funding pressures that outweighed inflows from OMO maturities (NGN70.50 billion).
Trading in the Treasury bills secondary market was bullish as the average yield contracted by 3bps to 5.2%. Across the benchmark curve, the average yield was unchanged at the short and mid segments but contracted at the long (-5bps) end following market participants’ demand for the 282DTM (-53bps) bill. Elsewhere, the average yield at the OMO segment declined by 4bps to 5.5%.
The Treasury bond secondary market traded with mixed sentiments, albeit with a bearish bias, as the average yield expanded slightly by 2bps to 11.2%. Across the benchmark curve, average yield contracted at the short (-1bp) end due to investors’ demand for the APR-2023 (-3bps) bond but expanded at the mid (+4bps) and long (+3bps) segments as investors sold off the JUL-2030 (+12bps) and JUL-2034 (+9bps) bonds, respectively.
