TUE, AUG 11 2020-theG&BJournal-The domestic bourse sustained losses today, following profit-taking in DANGCEM (-4.1%). The NSE ASI declined by 0.6% to 24,883.70 points – the largest decline since falling by 0.9% on July 6, 2020. Consequently, the Month-to-Date gain moderated to +0.8% while the Year-to-Date loss increased to -7.3%.
The total volume of trades increased by 17.8% to 206.61 million units, valued at NGN2.48 billion and exchanged in 3,925 deals. ACCESS was the most traded stock by volume at 29.21 million units while GUARANTY was the most traded stock by value at NGN625.55 million.
Analysing by sectors, the Insurance (-2.5%) and Industrial Goods (-2.2%) indices recorded significant losses, while the Consumer Goods (+0.9%), Banking (+0.5%) and Oil & Gas (+0.3%) indices closed higher.
Market sentiment, as measured by the market breadth, was negative (0.9x), as 17 tickers declined relative to 16 gainers. PRESTIGE (-10.0%) and IKEJAHOTEL (-9.8%) recorded the largest declines of the day, while CADBURY (+6.8%) and NB (+6.3%) were the top gainers.
Currency
The naira was flat at NGN385.50/USD and NGN475.00/USD at the I&E window and parallel market, respectively.
Money Market & Fixed Income
The overnight lending rate expanded by 4bps to 6.2%, as system liquidity remained tight.
Trading in the NTB secondary market was mixed, as market participants shifted their focus to tomorrow’s PMA where the CBN will be rolling over NGN56.78 billion worth of maturing instruments. Thus, average yield was flat at 1.7%. On the other hand, average yield expanded by 19bps to 4.2% at the OMO secondary market.
Elsewhere, trading in the Treasury bond secondary market was bearish, as average yield expanded by 29bps to 7.9%. Across the curve, average yield expanded at the short (+84bps) and mid (+9bps) segments, following sell-offs of the APR-2023 (+219bps) and MAR-2027 (+24bps) bonds, respectively. Conversely, yield at the long (-6bps) end contracted following demand for the APR-2037 (-24bps) bond.-With Cordros Research.
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