THUR, JUN 18 2020-theG&BJournal- Sentiments in the domestic bourse turned negative, proving yesterday’s gain a dead cat bounce. Precisely, the All-Share Index declined by 0.2% to 24,933.41 points, as investors took profit in NB (-9.5%). Thus, Month-to-Date and Year-to-Date losses increased to -1.3% and -7.1%, respectively.
The total volume of trades decreased by 35.6% to 171.21 million units, valued at NGN2.21 billion, and exchanged in 3,315 deals. FCMB was the most traded stock by volume at 32.36 million units, whereas GUARANTY was the most traded stock by value at NGN707.91 million.
Sectoral performance was negative, following declines in the Consumer Goods (-1.8%) and Banking (-0.1%) indices amid gains in the Insurance (+1.2%) and Oil & Gas (+0.4%) indices. The Industrial Goods index continued to trade flat.
Market sentiment, as measured by market breadth, was negative (0.9x), as 10 tickers declined, relative to 9 gainers. FIDSON (-9.7%) and NB (-9.5%) were the top losers of the day, while CILEASING (+9.5%) and AIICO (+9.0%) recorded the most significant gains.
Currency
The naira strengthened at the I&E window by 0.1% to NGN385.70/USD and weakened at the parallel market by 0.2% to NGN453.00/USD.
Money Market & Fixed Income
The overnight lending rate contracted by 522bps to 3.7%, following inflows from OMO maturities (NGN337.94 billion).
Trading in the NTB secondary market was bullish, as average yield contracted by 9bps to 3.4%. Across the curve, yields contracted at the short (-22bps) end, as market participants demanded the 28DTM (-129bps) instrument. The mid and long segments were flat. Elsewhere, yields at the OMO segment were flat at 4.8%.
Trading in the Treasury bond secondary market was bullish, as average yield contracted by 41bps to 9.4%. This is as market participants covered for lost bids at yesterday’s PMA. Across the benchmark curve, yields contracted at the short (-67bps), mid (-52bps) and long (-9bps) segments, following buying interests in the JAN-2026 (-128bps), FEB-2028 (-92bps) and MAR-2050 (-17bps) bonds, respectively.-With Cordros Research.
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