THUR, 22 OCT, 2020-theGBJournal- The local bourse rebounded today, as the social unrest in the country eased. Against the foregoing, major interests in MTNN (+1.5%) and STANBIC (+2.3%) fostered a 0.4% gain in the All-Share Index to 28,563.87 points. Thus, Month-to-Date and Year-to-Date returns increased to 6.5% and 6.4%, respectively.
The total volume of trades decreased by 4.7% to 311.33 million units, valued at NGN4.69 billion and exchanged in 3,375 deals. GUARANTY was the most traded stock by volume and value at 77.84 million units and NGN2.34 billion, respectively.
Across sectors, the Insurance (-0.9%), Oil & Gas (-0.1%) and Consumer Goods (-0.1%) indices recorded losses, while the Industrial Goods (+0.2%) index gained. The Banking index closed flat.
Market sentiment, as measured by the market breadth, was positive (1.8x), as 21 tickers gained, relative to 12 losers. UACN (+8.3%) and UNIONDAC (+8.0%) topped the gainers list, while WAPIC (-9.1%) and UAC-PROP (-3.7%) recorded the largest losses of the day.
Currency
The naira depreciated by 0.1% at the I&E window to NGN386.00/USD, while it remained flat at NGN463.00/USD in the parallel market.
Money Market & Fixed Income
The overnight lending rate expanded by 45bps to 1.3%, in the absence of any significant inflows to the system.
Trading in the NTB secondary market was bullish, as average yield contracted by 10bps to 0.5%. Across the curve, average yield declined at the short (-24bps) and mid (-11bps) segments, following buying interests in the 7DTM (-34bps) and 189DTM (-35bps) instruments, respectively; average yield was flat at the long-end. Similarly, average yield was flat at the OMO secondary market.
Activities at the Treasury bond secondary market was bullish, as average yield contracted by 28bps to 4.2%. Across the curve, average yield contracted across the short (-4bps), mid (-72bps), and long (-24bps) segments, due to the demand for the JUL-2021 (-18bps), APR-2029 (-78bps) and APR-2037 (-59bps) bonds, respectively.-With Cordros Research
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