THUR, MARCH 05 2020-theG&BJournal- Sentiment continues to wax strong in the domestic equities market, as investors cherry-picked Tier I banking stocks. Consequently, the benchmark index rose by 0.04% to 26,426.20. The Month-to-Date return increased to +0.8%, while Year-to-Date loss moderated to -1.6%.
The total volume of trades increased by 40.4% to 431.92 million units, valued at NGN7.82 billion and exchanged in 4,518 deals. GUARANTY was the most traded stock by volume at 75.79 million units, while NESTLE was the most traded stock by value at NGN2.99 billion.
On sector performance, gains in the Banking (+3.32%) and Insurance (+0.11%) indices masked the declines recorded in the Industrial Goods (-1.87%) and Consumer Goods (-0.12%) indices; Oil & Gas index closed flat.
Market sentiment, as measured by market breadth, was positive (2.0x), as 22 tickers gained, relative to 11 losers. CHAMS (+10.0%) and STANBIC (+9.9%) topped the gainer’s list, while GLAXOSMITH (-10.0%) and JAIZBANK (-10.0%) recorded the largest declines.
CURRENCY
The naira was flat at NGN360.00/USD in the parallel market, while it weakened by 0.1% to NGN366.57/USD at the I&E FX window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 47bps to 15.6% as the CBN mopped up liquidity via OMO auction, selling instruments worth NGN110.51 billion.
Trading in the NTB secondary market was bearish as average yield expanded by 4bps to 4.0%. Yields expanded at the mid (+23bps) segment following sell-offs of the 175DTM (+69bps) instrument. On the flip side, yield pared at the long (-1bp) end of the curve following interest in the 315DTM (-65bps) instrument; the short end remained flat. Similarly, the average yield in the OMO secondary market expanded by 19bps to 12.4%.
The Treasury bond secondary market remained bearish, as average yield expanded marginally by 3bps to 9.5%. Yields expanded across the mid (+14bps) and long (+3bps) segments of the curve, following sell-offs of the FEB-2028 (+68bps) and APR-2049 (+10bps) bonds respectively. Conversely, the short (-9bps) end of the curve contracted following buying interest in the JUL-2021 (-25bps) bond. -Cordros Research
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