December 8, 2021/Cordros Report
EQUITIES
Sentiments remained positive in the domestic bourse, as investors took positions in MTNN (+4.5%). Thus, the All-Share Index advanced by 1.0% to 42,435.16 points. Consequently, the Month-to-Date loss moderated to -1.9%, while the Year-to-Date gain increased to +5.4%.
The total volume of trades increased by 1.6% to 649.77 million units, valued at NGN7.20 billion, and exchanged in 3,757 deals. FBNH was the most traded stock by volume and value at 441.93 million units and NGN5.04 billion, respectively.
Sectoral performance was broadly positive, as the Banking (+1.8%), Oil and Gas (+1.1%), Consumer Goods (+0.6%), Insurance (+0.6%), and Industrial Goods (+0.1%) indices posted gains.
As measured by market breadth, market sentiment was positive (1.6x) as 18 tickers gained relative to 11 losers. MEYER (+7.7%) and MANSARD (+7.3%) topped the gainers’ list, while CUTIX (-9.7%) and ROYALEX (-8.1%) recorded the most significant losses 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 was unchanged at 16.3% in the absence of any significant funding pressures on the system.
The NTB secondary market was quiet as market participants anticipated today’s PMA result. Thus, the average yield stayed flat at 4.5%. Across the curve, the average yield stayed flat at the short and mid-segments but expanded at the long (+1bp) end as investors sold off the 323DTM (+12bps) bill. Elsewhere, the average yield expanded by 6bps to 5.5% in the OMO segment.
Trading in the Treasury bond secondary market remained mixed, albeit with a bearish tilt, as the average yield expanded slightly by 1bp to 11.4%. Across the benchmark curve, the average yield contracted at the short (-8bps) and long (-3bps) ends following demand for the JAN-2026 (-35bps) and APR-2037 (-16bps) bonds, respectively; but expanded at the mid (+17bps) segment as investors sold off the JUL-2030 (+20bps) bond.
