MON, FEB 17 2020-theG&BJournal- Bearish sentiment continues to drag the Nigerian equities market further lower, as the NSE All-Share Index shed 0.7% to 27,570.94 points, following investors’ sell-offs of BUACEMENT, ZENITHBANK and GUARANTY stocks. Consequently, the Month-to-date loss increased to 4.4%, while the Year-to-Date gain moderated to 2.7%.
The total volume of trades increased by 23.8% to 134.61 million units, valued at NGN1.58 billion and exchanged in 3,302 deals. ZENITHBANK was the most traded stock by volume and value at 22.45 million units and NGN441.62 million, respectively.
All sector indices closed negative, save for the Oil and Gas (+0.6%) index, as the Industrial Goods (-1.6%), Banking (-1.5%), Consumer Goods (-1.3%) and Insurance (-0.8%) indices declined.
Market sentiment, as measured by market breadth, was negative (0.6x), as 18 tickers declined, relative to 10 gainers. LAWUNION (-9.7%) and WAPIC (-9.1%) recorded the largest declines, while JAIZBANK (+6.3%) and WAPIC (+9.1%) topped the gainer’s list.
CURRENCY
The naira traded flat against the US dollar at NGN360.00/USD in the parallel market, but weakened by 0.01% to NGN364.95/USD at the I&E FX window.
MONEY MARKET & FIXED INCOME
The overnight lending rate widened by 25bps to 3.5%, following banks provisioning for CBN’s wholesale, Invisibles and SMEs FX auctions.
Trading in the NTB secondary market was bullish, as the average yield pared by 2bps to 3.8%. Yields contracted at the mid (-10bps) segment, following buying interest in the 150DTM (-17bps) instrument. On the flip, the short and long end of the curve traded flat. Elsewhere, average yield contracted by 25bps to 13.0% in the OMO secondary market.
The Treasury bonds market sustained its bullish stance, as average yield contracted by 3bps to 10.1%. Yields contracted at the short (-11bps) and mid (-1bp) segments, following buying interests in the MAR-2024 (-33bps) and MAR-2027 (-4bps) bonds, respectively. Conversely, yields expanded at the long (+4bps) end of the curve following the sell-off of the JUL-2034 (+15bps) bond.-Courtesy Cordros Securities
|twitter:@theGBJournal|email: info@govandbusinessjournal.com.ng|
