January 11, 2021/Cordros Report
EQUITIES
The Nigerian equities market reversed yesterday’s gains and traded with negative sentiments as investors sold off on NESTLE (-7.8%). Thus, the All-Share Index settled lower by 0.1% to 43,859.30 points. Accordingly, the Year-to-Date return moderated to +2.7%.
The total volume of trades decreased by 5.4% to 294.54 million units, valued at NGN6.77 billion, and exchanged in 4,501 deals. TRANSCORP was the most traded stock by volume at 58.36 million units, while BUAFOODS was the most traded stock by value at NGN3.32 billion.
On sectors, the Consumer Goods (-4.8%), Insurance (-2.1%) and Industrial Goods (-0.3%) indices declined while the Oil & Gas (+1.0%) and Banking (+0.2%) indices posted gains.
As measured by market breadth, market sentiment was negative (0.7x) as 26 tickers lost relative to 17 gainers. MBENEFIT (-10.0%) and BERGER (-9.9%) topped the losers’ list, while BUAFOODS (+10.0%) and ETERNA (+5.1%) recorded the most significant gains of the day.
CURRENCY
The naira was flat at NGN416.50/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 175bps to 16.3%, as funding pressures on the system offset inflows from OMO maturities (NGN59.50 billion).
At the NTB segment of the treasury bills secondary market, trading was mixed as market participants stayed on the sidelines in anticipation of Wednesday’s auction results. Thus, the average yield was unchanged at 4.4%. Elsewhere, the average yield expanded by 9bps to 5.6% at OMO segment.
The Treasury bond secondary market was mixed with a bullish tilt, as the average yield pared by 1bp to 11.4%. Across the benchmark curve, the average yield declined at the short (-2bps) and long (-1bp) ends following a slight uptick in demand for the JAN-2026 (-6bps) and MAR-2050 (-6bps) bonds, respectively; the average yield was flat at the mid segment.
