WED, JUN 17 2020-theG&BJournal- Trading in the domestic equities market was negative for most of the day however, NESTLE (+10.0) trading limit up at the end of the day’s session, ensured the market record its first gain since June 9, 2020.
The All-Share Index advanced by 0.2% to 24,972.89 points. Accordingly, the Month-to-Date and Year-to-Date losses moderated to -1.2% and -7.0%, respectively.
The total volume of trades increased by 32.7% to 265.96 million units, valued at NGN2.71 billion and exchanged in 3,564 deals. GUARANTY was the most traded stock by volume and value at 43.67 million units and NGN1.03 billion, respectively.
Analysing by sectors, the Oil and Gas (-4.4%), Insurance (-3.0%) and Banking (-0.8%) indices declined as the Consumer Goods (+4.2%) index recorded the sole gain of the day. The Industrial Goods index was flat.
Market sentiment, as measured by market breadth, was negative (0.4x), as 24 tickers declined, relative to 10 gainers. SEPLAT (-10.0%) and NEIMETH (-9.6%) were the top losers of the day, while NESTLE (+10.0%) and CADBURY (+6.8%) recorded the largest gains.
Currency
The naira was flat at the I&E window and parallel market at NGN386.00/USD and NGN452.00/USD, respectively.
Money Markets & Fixed Income
The overnight lending rate expanded by 184bps to 8.9%, in the absence of significant inflows into the system.
The NTB secondary market traded on a mixed note, as average yield closed flat at 3.4%. This is as market participants shifted their focus to today’s PMA. At the PMA, the CBN fully allotted NGN14.61 billion worth of bills – NGN2.0 billion of the 91-day, NGN2.0 billion of the 182-day and NGN10.61 billion of the 364-day – at respective stop rates of 1.80% (previously 2.00%), 2.04% (previously 2.20%), and 3.75% (previously 4.02%).
Trading in the Treasury bond secondary market was mixed, albeit with a bullish bias, as average yield pared by 3bps to 9.9%. Across the benchmark curve, yields contracted at the short (-10bps) end, as investors demanded the MAR-2025 (-55bps) bond, while they expanded slightly at the long (+1bp) end, due to sell-off of the MAR-2036 (+8bps) bond. The mid-segment traded flat.
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