November 30, 2021/Cordros Report
EQUITIES
Profit-taking activities continued today in the Nigerian equities market as selloffs in banking stocks – GTCO (-1.4%), UBN (-6.2%), and ZENITHBANK (-1.0%) drove the benchmark index lower. Consequently, the All Share Index declined by 0.1% to 43,248.05 points with the Month-to-Date and Year-to-Date gains moderating to +2.9% and +7.4%, respectively.
The total volume of trades increased by 5.5% to 224.91 million units, valued at NGN3.71 billion, and exchanged in 4,331 deals. ACCESS was the most traded stock by volume at 42.18 million units, while ZENITHBANK was the most traded stock by value at NGN935.40 million.
Sectoral performance was mixed as the Insurance (+1.6%) and Banking (+0.3%) indices gained while the Oil & Gas (-0.4%) and Consumer Goods (-0.2%) indices recorded declines. The Industrial Goods index closed flat.
As measured by market breadth, market sentiment remained negative (0.5x), as 23 tickers lost relative to 11 gainers. UPDCREIT (-9.9%) and IKEJAHOTEL (-9.6%) recorded the most significant losses of the day, while AIICO (+9.2%) and ACCESS (+4.4%) topped the gainers’ list.
CURRENCY
The naira was flat at NGN415.07/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 250bps to 17.8% following funding pressures that outweighed inflows from OMO maturities (NGN54.30 billion).
Trading in the NTB market was bullish, as the average yield contracted by 6bps to 4.8%. Across the benchmark curve, the average yield was unchanged at the short and mid segments but declined at the long (-13bps) end following demand for the 317DTM (-114bps) bill. Elsewhere, the average yield at the OMO segment remained flat at 5.5%.
The Treasury bond secondary market traded quietly as the average yield was unchanged at 11.3%.
