MON, OCT 19 2020-theG&BJournal-The domestic equities market opened the week with mixed sentiments, as gains in GUARANTY (+1.5%) and INTBREW (+9.9%) were neutralized by profit-taking in ZENITHBANK (-2.6%) and some other large cap stocks. Consequently, the All Share Index closed flat at 28,658.31 points. Thus, Month-to-Date and Year-to-Date gains were unchanged at 6.8%.
The total volume of trades decreased by 41.3% to 287.30 million units, valued at NGN3.40 billion and exchanged in 5,132 deals. ZENITHBANK was the most traded stock by volume and value at 43.00 million units and NGN905.35 million, respectively.
On sectors, the Insurance (+1.1%), Consumer Goods (+0.9%) and Oil & Gas (+0.5%) indices recorded gains, while the Banking (-0.3%) and Industrial Goods (-0.1%) indices declined.
Market sentiment, as measured by the market breadth, was positive (1.1x), as 19 tickers gained, relative to 18 losers. INTBREW (+9.9%) and IKEJAHOTEL (+9.9%) topped the gainers’ list, while ETERNA (-9.0%) and MAYBAKER (-7.7%) recorded the largest losses of the day.
Currency
The naira was flat at NGN386.00/USD and NGN462.00/USD at the I&E window and parallel market, respectively.
Money Market and Fixed Income
The overnight lending rate contracted by 12bps to 1.9%, as FGN bond coupon payment worth NGN32.46bn hit the system.
Trading in the NTB secondary market was bullish, as average yield contracted by 34bps to 0.8%. Across the curve, average yield was flat at the short segment but contracted at the mid (-10bps) and long (-69bps) segments, following buying interests in the 192DTM (-41bps) and 311DTM (-120bps) instruments, respectively. Elsewhere, average yield contracted by 11bps at the OMO secondary market.
At the Treasury bond secondary market, trading was bullish, as average yield contracted by 29bps to 4.7%. Across the curve, average yield declined at the short (-31bps) and long (-54bps) segments, due to the demand for the JAN-2026 (-106bps) and MAR-2036 (-81bps) bonds, respectively. Conversely, average yield expanded at the mid (+19bps) end, following sell-off of the APR-2029 (+90bps) bond.-With Cordros Research.
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