…All-Share Index declines by 0.8% to 34,774.08 points
MON, 16 NOV, 2020-theGBJournal– Trading in the Treasury bond secondary market was mixed, with bullish bias, as average yield pared slightly by 1bp to 4.0%. Across the curve, average yield contracted at the short (-4bps) end, due to the demand for the JAN-2020 (-9bps) bond, but expanded at the mid (+2bps) and long (+1bp) segments, following sell-offs of the FEB-2028 (+6bps) and JUL-2034 (+15bps) bonds, respectively.
The overnight lending rate expanded by 37bps to 1.0%, following outflows for CBN’s FX Invisibles & SMEs auction.
Activities at the NTB secondary market were mixed, as market participants remain wary of yields at current levels. Thus, average yield was flat at 0.1%. Elsewhere, average yield contracted by 7bps to 0.1% at the OMO secondary market.
Meanwhile, trading in the domestic bourse resumed with the bears dominating, following major sell-offs on Tier 1 banks, ZENITHBANK (-4.2%) and GUARANTY (-1.1%). As a result, the All-Share Index declined by 0.8% to 34,774.08 points. Accordingly, Month-to-Date and Year-to-Date gains moderated to 13.9% and 30.0%, respectively.
The total volume of trades decreased by 46.3% to 668.53 million units, valued at NGN7.85 billion, and exchanged in 10,319 deals. ZENITHBANK was the most traded stock by volume and value at 94.03 million units and NGN2.51 billion, respectively.
Sectoral performance was broadly negative, as all our coverage indices – Banking (-4.4%), Consumer Goods (-3.8%), Oil & Gas (-3.1%) and Insurance (-1.7%) – save for the Industrial Goods (+2.1%) index recorded losses.
Market sentiment, as measured by market breadth, was negative (0.3x), as 43 tickers declined, relative to 11 gainers. NAHCO (-10.0%) and OANDO (-10.0%) topped the losers’ list, while BOCGAS (+9.9%) and NEIMETH (+9.0%) recorded the largest gains of the day.
In the currency market, the naira closed flat at NGN386.00/USD at the I&E window but depreciated by 1.1% to NGN475.00/USD in the parallel market, as demand pressures intensifies in the window.
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