MON 11 JAN, 2021-theGBJournal- The Treasury bonds secondary market was mixed with bearish bias, as the average yield expanded by 1bp to 6.3%. Across the curve, average yield expanded at the short (+1bp) and mid (+7bps) segments, following profit-taking on the JAN-2026 (+9bps) and MAR-2027 (+19bps) bonds, respectively. Conversely, the average yield declined at the long (-8bps) end, due to demand for the MAR-2035 (-49bps).
At the Money market, the overnight lending rate opened the week lower, as it declined by 608bps to 3.3%, in the absence of any major funding pressure in the system.
Trading in the NTB secondary market was bearish, as the average yield expanded by 5bps to 0.5%. Across the curve, average yield declined at the short (-8bps) end, following demand for the 31DTM (-14bps) instrument, but expanded at the mid (+2bps) and long (+15bps) segments, due to sell-offs of the 171DTM (+8bps) and 318DTM (+25bps) instruments, respectively. Average yield was flat at the OMO secondary market.
The naira was flat at NGN393.33/USD at the I&E window but depreciated by 0.6% to NGN475.00/USD in the parallel market.
Meanwhile, trading in the domestic equities market started the week on a positive note, following investors’ interests in ZENITHBANK (+0.8%), INTBREW (+2.5%) and FLOURMILL (+2.8%) stocks. Consequently, the benchmark index increased by 0.1% to 40,150.78 points. Sequentially, Month-to-Date and Year-to-Date loss both moderated to -0.3%.
The total volume traded increased by 0.7% to 335.70 million units, valued at NGN2.49 billion, and exchanged in 5,338 deals. MBENEFIT was the most traded stock by volume at 104.16 million units, while OKOMUOIL was the most traded stock by value at NGN462.84 million.
Analysing by sectors, the Oil & Gas (+0.9%), Consumer Goods (+0.5), and Banking (+0.2%) indices recorded gains, while the Insurance (-0.7%) index declined. The Industrial Goods index closed flat.
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