TUE, SEPT 01 2020-theG&BJournal-Stocks rose again on Tuesday, as market builds on the Monday’s performance.
The All-Share Index gained 0.3% to 25,413.95 points on the back of buying interests on NB (+5.4%), STANBIC (1.25%), UBA (4.80%), ETI (+6.41%) and UACN (4.39%). The Year-to-Date loss moderated to -5.3% as a result.
The total trade volume increased by 255.6% to 1.07 billion units, valued at NGN2.10 billion and exchanged in 3,221 deals. UAC-PROP was the most traded stock by volume and value at 947.74 million units and NGN663.67 million respectively.
Sectoral performance was broadly positive, following gains in the Banking (+1.1%), Consumer Goods (+0.9%), and Insurance (+0.8%) indices, and a loss in the Industrial Goods (-0.1%) index. The Oil & Gas index was flat.
Market sentiment, as measured by the market breadth, was positive (3.0x), as 27 tickers gained relative to 9 losers. LIVESTOCK (+10.0%) and ETERNA (-9.5%) topped the gainers’ list while WAPIC (-5.7%) and UBN (-5.7%) recorded the largest losses of the day.
Currency
The naira depreciated at the I&E window by 0.1% to NGN386.00/USD, while it appreciated at the parallel market by 5.7 % to NGN440.00/USD, respectively.
Money Market & Fixed Income
The overnight lending rate contracted by 322bps to 6.4%, in the absence of any funding pressure on the system.
Trading in the NTB secondary market was bullish, as average yield contracted by 3bps to 2.1%. Across the curve, yield contracted at the long (-9bps) end, due to demand for the 331DTM (-61bps) instrument; yield was unchanged at the short and mid segments. Similarly, average yield contracted by 11bps to 3.0% at the OMO secondary market.
Elsewhere, the Treasury bond secondary market traded with bearish sentiments, as average yield expanded by 3bps to 8.0%. Across the curve, yield expanded at the short (+16bps) end, due to sell-offs of the JAN-2022 (+62bps) bond, while they contracted at the mid (-4bps) and long (-3bps) segments, following buying interests in the MAR-2027 (-4bps) and MAR-2050 (-23bps) bonds, respectively.
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