November 18, 2021/Cordros Report
EQUITIES
Profit-taking activities continued today in the Nigerian equities market as investors’ late selloffs in FBNH (-6.5%) drove the benchmark index lower. Thus, the NGX ASI dipped by 0.2% to 43,285.97 points, with the Month-to-Date and Year-to-Date gains lower at +3.0% and +7.5%, respectively.
The total volume of trades declined by 20.5% to 210.55 million units, valued at NGN2.61 billion, and exchanged in 3,423 deals. STERLNBANK was the most traded stock by volume at 60.19 million units, while AIRTELAFRI was the most traded stock by value at NGN669.95 million.
On sectors, the Insurance (+0.6%) and Consumer Goods (+0.1%) indices gained, while the Oil & Gas (-0.2%), Banking (-0.2%) and Industrial Goods (-0.1%) indices declined.
As measured by market breadth, market sentiment was negative (0.5x), as 22 tickers declined relative to 11 gainers. CHAMS (-8.7%) and REGALINS (-7.5%) recorded the most significant losses of the day, while ETRANZACT (+10.0%) and VITAFOAM (+10.0%) topped the gainers’ list.
CURRENCY
The naira appreciated by 0.1% to NGN414.80/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 39bps to 13.6% in the absence of any significant funding pressures on the system.
Trading in the Treasury bills secondary market was bullish as the average yield contracted by 13bps to 5.0%. Across the benchmark curve, the average yield was unchanged at the short and mid segments but contracted at the long (-26bps) end following market participants’ demand for the 252DTM (-80bps) bill. Elsewhere, the average yield at the OMO segment was unchanged at 5.5%.
Although with a bullish tilt, the Treasury bond secondary market continued trading mixed sentiments, as the average yield contracted slightly by 1bp to 11.2%. Like the NTB market, buying activity across the benchmark curve was witnessed at the long (-1bp) end, where investors demanded the MAR-2036 (-5bps) bond while the average yield at the short and mid segments was flat.
