November 29, 2021/Cordros Report
EQUITIES
Trading in the local bourse kicked off the week with negative sentiments as investors sold off INTEBREW (-4.0%) and ZENITHBANK (-0.6%). Thus, the benchmark index declined by 0.1% to 43,270.94 points. Accordingly, the Month-to-Date and Year-to-Date gains moderated to +2.9% and +7.5%, respectively.
The total volume of trades declined by 30.2% to 213.13 million units, valued at NGN2.36 billion, and exchanged in 4,105 deals. FCMB was the most traded stock by volume at 58.45 million units, while AIRTELAFRI was the most traded stock by value at NGN679.79 million.
Analysing by sectors, the Oil & Gas (-0.6%), Consumer Goods (-0.2%), and Banking (-0.2%) indices declined while the Insurance (+0.8%) index was the sole gainer of the day. The Industrial Goods index closed flat.
As measured by market breadth, market sentiment was negative (0.7x), as 20 tickers lost relative to 12 gainers. UPDCREIT (-9.9%) and CHIPLC (-7.3%) topped the losers’ list, while AIICO (+8.6%) and VERITASKAP (+4.8%) recorded the most significant gains of the day.
CURRENCY
The naira was flat at NGN415.07/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 42bps to 15.3% in the absence of significant funding pressures on the system.
The NTB secondary market traded quietly as the average yield was unchanged at 4.9%. Across the benchmark curve, the average yield was flat the short and mid-segments but expanded slightly at the long (+1bp) end as market participants sold off the 269DTM (+12bps) bill. Similarly, mixed sentiments were recorded at the OMO segment as the average yield closed flat at 5.5%.
Trading at the Treasury bond secondary market ended the day mixed, albeit with a bullish tilt, as the average yield pared by 1bp to 11.3%. Across the benchmark curve, the average yield declined at the short (-1bp) and mid (-2bps) segments following investors’ demand for the JAN-2026 (-4bps) and JUL-2030 (-5bps) bonds, respectively; the long end remained unchanged.
