WED, JAN 15 2020-theG&BJournal- The domestic equities market recorded the second consecutive decline as the All Share Index dipped by 0.74% to close at 29,062.50 points, following investor sell-offs of MTNN (-2.98%), ETI (-7.69%) and ACCESS (-2.86%).
The total volume of trades decreased by 46% to 360.08 million units, valued at NGN2.83 billion and exchanged in 4,345 deals. MORISON was the most traded stock by volume at 126.77 million units while ZENITHBANK was the most traded stock by value at NGN674.03 million respectively.
All sector indices closed negative, save for the Insurance (0.33%) index, as the Industrial Goods (-0.29%) Consumer Goods (-0.21%), Banking (-0.21%) and the Oil & Gas (-0.11%) indices recorded declines.
Market sentiment, as measured by market breadth, was negative (0.6x), as 17 tickers recorded declines while 10 tickers recorded gains. LIVESTOCK (-9.09%) and SOVRENINS (-9.09%) recorded the largest declines, while BETAGLAS (+10.00%) and CORNERST (+9.43%) topped the gainer’s list.
Currency
In today’s trading, the naira weakened by 0.05% against the US dollar to NGN362.60/USD at the I&E FX window but was flat at NGN362.00/USD at the parallel market.
Money market & fixed income
The overnight lending rate increased marginally by 75bps to 14.17%, on the back of strained liquidity, which is estimated at NGN35.80 billion.
Activities in the Treasury bills market sustained its bullish trend, as the average yield dipped by 2bps to 4.44%. Yields contracted at the short (-40bps) end of the curve, following buying interests in the 15DTM (-15bps) instrument. Elsewhere, average yield expanded by 31bps to close at 13.11% at the OMO bills secondary market. At today’s NTB primary action, the CBN fully allotted NGN225.45 billion worth of bills – NGN5.85billion of the 91- day, NGN26.60 billion of the 182-day and NGN 193.00 billion of the 364-day – at respective stop rates of 2.95% (previously 3.50%), 3.95% (previously 4.90%), and 5.09% (previously 5.20%).
Trading in the Treasury bonds market was bearish, as the average yield increased by 3bps to 10.27%. Yields expanded across the short (+6bps), mid (+1bp) and the long (+2bps) segments of the curve, following sell-offs of JAN-2022 (+28bps), MAR-2027 (+3bps) and JAN-2034 (+24bps) bonds, respectively.-Courtesy Cordros Research
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