THUR, MAY 07 2020-theG&BJournal- The Nigerian equities market recorded another gain in today’s trading as demand for DANGCEM (+4.3%) spurred a 0.9% increase in the All-Share Index. Thus, the NSE ASI settled at 24,354.25 points. Accordingly, Month-to-Date gain increased to 5.8%, as Year-to-Date losses moderated to -9.3%.
The total volume of trades increased by 1.2% to 431.58 million units, valued at NGN5.26 billion and exchanged in 5,860 deals. FBNH was the most traded stock by volume at 115.57 million units while NESTLE was the most traded stock by value at NGN1.35 billion.
Sectoral performance was positive as all sector indices gained, save for the Banking (-2.0%) index that was dragged down by losses in Tier 1 bank names. The Consumer Goods (+2.4%) index led the gains, followed by the Industrial Goods (+2.0%), Insurance (+1.0%) and Oil and Gas (+0.6%) indices.
Market sentiment, as measured by market breadth, was positive (1.1x), as 21 tickers gained, relative to 20 losers. ROYALEX (+10.0%) and UPL (+9.8%) were the top gainers of the day, while LINKASSURE (-8.3%) and REDSTAREX (-5.0%) were the top losers of the day.
Currency
The naira weakened by 0.5% to NGN386.38/USD at the I&E window but was flat at NGN437.00/USD in the parallel market.
Money Market and Fixed Income
The overnight lending rate contracted by125bps to 3.0%, in the absence of any significant outflow from the system.
Trading in the NTB secondary market was mixed, albeit with a bullish tilt, as average yield pared by 4bps to 2.7%. Across the curve, yield at the long (-11bps) end contracted following buying interest in the 189-DTM (-56bps) instrument; the short and mid segments were flat. Elsewhere, average yield expanded by 3bps to 10.0% in the OMO secondary market.
Trading in the Treasury bond secondary market was bearish, as average yield expanded by 11bps to 10.3%. Across the curve, yields at the short (+12bps), mid (+18bps) and long (+6bps) segments expanded, following sell-offs of the JAN-2026 (+79bps), MAR-2027 (+49bps) and MAR-2036 (+19bps) bonds, respectively.-with Cordros Research.
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