WED, APRIL 08 2020-theG&BJournal- Nigeria’s equities market was positive throughout the day, following investors’ interest in WAPCO (+9.8%), DANGSUGAR (+9.6%) and banking stocks. Thus, the All-Share Index advanced by 0.7% to 21,073.26 points. Accordingly, Month-to-date and Year-to-Date losses moderated to -1.1% and -21.5%, respectively.
The total volume of trades decreased by 80.0% to 346.41 million units, valued at NGN5.22 billion and exchanged in 4,660 deals. GUARANTY was the most traded stock by volume and value at 102.24 million units and NGN1.84 billion, respectively.
Sectoral performance was positive, as the Banking (+2.1%), Consumer Goods (+1.0%), Industrial Goods (+1.0%), Insurance (+0.1%) indices all recorded gains. However, sell-off of ARDOVA caused the Oil and Gas (-0.6%) index to decline.
Market sentiment, as measured by market breadth, was positive (3.6x), as 25 tickers gained, relative to 7 losers. ETI (+10.0%) and IKEJAHOTEL (+10.0%) recorded the largest gains, while UNIONDAC (-10.0%) and ARDOVA (-9.6%) were the top losers of the day.
Currency
The naira traded flat at the parallel market and I&E FX window at NGN415/USD and NGN384.83/USD, respectively.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 66bps to 3.2%, as system liquidity –estimated at NGN459.48 billion– remains healthy.
Trading in the NTB secondary market was bearish, as average yield across instruments expanded by 9bps to 3.3%. Across the curve, yield expanded at the mid (+45bps) segment as investors sold off the 177DTM (+135bps) instrument while contracting at the long (-18bps) end as investors demanded the 310DTM (-125bps) instrument. On the other hand, yield at the short end remained flat. Similarly, average yield contracted by 15bps to 13.1% in the OMO secondary market.
Trading in the Treasury bond secondary market was bullish as average yield contracted by 14bps to 11.3%. Across the curve, yields contracted at the short (-40bps) and long (-3bps) ends of the curve, following buying interests in the MAR-2024 (-115bps) and APR-2049 (-20bps) bonds, respectively; the mid-segment was flat.-with Cordros Research
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