November 17, 2021/Cordros Report
EQUITIES
Bearish sentiments resurfaced in the domestic bourse as investors took profit off GTCO (-2.3%), ACCESS (-2.3%) and FBNH (-1.6%). Thus, the benchmark index declined by 0.2% to 43,349.90 points. Accordingly, the Month-to-Date and Year-to-Date gains moderated to +3.1% and +7.7%, respectively.
The total volume traded decreased by 37.5% to 264.79 million units, valued at NGN6.08 billion, and exchanged in 4,230.00 deals. FBNH was the most traded stock by volume at 68.61 million units, while NESTLE was the most traded stock by value at NGN2.97 billion.
Analysing by sectors, the Insurance (-0.9%), Oil & Gas (-0.8%), Consumer Goods (-0.7%), and Banking (-0.4%) indices recorded losses while the Industrial Goods index closed flat.
As measured by market breadth, market sentiment was negative (0.7x), as 21 tickers lost relative to 14 gainers. NEIMETH (-9.1%) and UNITYBNK (-8.5%) topped the losers’ list, while ABCTRANS (+10.0%) and CHAMS (+4.6%) recorded the most significant gains of the day.
CURRENCY
The naira stayed flat at NGN415.10/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate declined by 5bps to 14.0% 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 5.1%. Across the benchmark curve, the average yield was flat at the short and mid segments but contracted at the long (-2bps) end as investors demanded the 295DTM (-22bps) bill. Elsewhere, the average yield at the OMO segment expanded by 5bps to 5.5%.
Trading in the Treasury bond secondary market was also quite as investors await the result of today’s primary auction. Thus, the average yield closed flat at 11.2%. Across the benchmark curve, the average yield expanded at the short (+2bp) end due to sell-offs of the APR-2023 (+9bps) bond. At the auction, the DMO offered instruments worth NGN150.00 billion to investors through re-openings of the 12.50% FGN JAN 2026 (Bid-to-offer: 1.0x; Stop rate: 11.65%), 16.25% APR 2037 (Bid-to-offer: 0.9x; Stop rate: 12.95%) and 12.98% FGN MAR 2050 (Bid-to-offer: 3.2x; Stop rate: 13.30%) with a total subscription of NGN259.23 billion recorded.
