TUE, JUN 09 2020-theG&BJournal- Stocks closed higher for the second consecutive session, as investor interest in BUACEMENT (+4.1%), following the company’s positive Q1-20 results, helped the market eke out a gain. Thus, the All-Share Index advanced by 0.3% to 25,335.09 points. Accordingly, the Month-to-Date return (+0.3%) turned positive, while Year-to-Date loss moderated to -5.6%.
The total volume of trades increased by 16.6% to 268.74 million units, valued at NGN1.12 billion and exchanged in 4,137 deals. MBENEFIT was the most traded stock by volume at 99.45 million units while GUARANTY was the most traded stock by value at NGN170.44 million.
Analysing by sector, the Industrial Goods (+2.7%), Insurance (+0.4%) and Consumer Goods (+0.3%) indices closed in the green, while the Oil and Gas (-2.3%) and Banking (-0.2%) indices recorded losses.
Market sentiment, as measured by market breadth, was negative (0.6x), as 22 tickers declined, relative to 13 gainers. MOBIL (-9.9%) and FIDSON (-7.7%) were the top losers of the day, while BOCGAS (+10.0%) and MBENEFIT (+10.0%) recorded the largest gains.
Currency
The naira strengthened by 0.1% and 0.5% at the I&E window and parallel market to NGN387.08/USD and NGN448.00/USD, respectively.
Money Market & Fixed Income
The overnight lending rate remained elevated, closing flat at 15.4%, amidst still tight system liquidity.
Trading in the NTB secondary market was mixed with average yield closing flat at 3.4%. This was as market participants geared up for tomorrow’s NTB auction wherein the CBN will be offering NGN90.94 billion worth of instruments across all tenors to investors. Elsewhere, average yield in the OMO secondary market contracted by 14bps to 5.0%.
Trading in the Treasury bond secondary market continues to be mixed, although with a bullish bias, as average yield pared by 4bps to 9.8%. Across the curve, average yield contracted at the short (-19bps) end due to demand for the JAN-2022 (-92bps) bond, while it expanded at the mid (+10bps) and long (+2bps) segments, following sell-offs of the APR-2029 (+29bps) and MAR-2050 (+7bps) bonds, respectively.
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