WED, 11 NOV, 2020-theGBJournal- The domestic equities market extended its gains for the fourth consecutive session, as the All-Share Index advanced by 1.9% to 33,268.36 points. Today’s performance was underpinned by sustained interests in MTNN (+2.4%), NB (+9.5%), BUACEMENT (+2.4%), and Tier 1 banks – ZENITHBANK (+4.5%) and GUARANTY (+2.9%). Accordingly, Month-to-Date and Year-to-Date gains increased to 9.0% and 23.9%, respectively.
The total volume of trades increased by 48.3% to 858.16 million units, valued at NGN9.06 billion, and exchanged in 8,142 deals. FBNH was the most traded stock by volume at 145.05 million units, while ZENITHBANK was the most traded stock by value at NGN1.52 billion.
On sectors, performance remains broad-based, as the indices in our coverage – Banking (+4.1%), Consumer Goods (+2.7%), Oil & Gas (+1.3%), Insurance (+1.2%), and Industrial Goods (+1.1%) – all closed in green.
Market sentiment, as measured by market breadth, was positive (7.3x), as 51 tickers gained, relative to 7 losers. STERLNBANK (+10.0%) and FIDSON (+10.0%) topped the gainers’ list, while LEARNAFRCA (-4.8%) and CILEASING (-4.7%) recorded the largest losses of the day.
The naira closed flat at NGN385.67/USD at the I&E window but depreciated by 0.2% to NGN466.00/USD in the parallel market.
The overnight lending rate contracted by 14bps to 1.1%, in the absence of any significant outflows from the system.
Activities at the NTB secondary market were bullish, as average yield contracted by 5bps to 0.5%. Across the curve, average yield was flat at the short and mid segments, but contacted at the long (-10bps) end, due to the demand for the 351DTM (-19bps) instrument. Similarly, average yield contracted by 4bps to 0.2% at the OMO secondary market.
Trading was bearish at the Treasury bond secondary market, as average yield expanded by 12bps to 4.0%. Average yield expanded across the short (+3bps), mid (+37bps) and long (+5bps) segments, following sell-offs of the JAN-2022 (+23bps), APR-2029 (+53bps), and MAR-2050 (+30bps) bonds, respectively.-With Cordros Research.
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