…Naira appreciates in both the I&E window and parallel market.
MON, MAY 04 2020-theG&BJournal-Trading at the Nigerian Stock Exchange began the week on a positive note, largely driven by investors’ demand for MTNN (+3.6%) shares. Thus, the All-Share Index increased by 0.3% to 23,089.86 points. Consequently, the Year-to-Date losses moderated to -14.0%.
The total volume of trades decreased by 30.5% to 249.86 million units, valued at NGN2.40 billion and exchanged in 6,538 deals. GUARANTY was the most traded stock by volume and value at 44.53 million units and NGN470.41 million, respectively.
On a sectoral breakdown, declines were recorded in the Insurance (-2.0%), Industrial Goods (-1.3%) and Banking (-1.2%) indices, albeit were masked by the gains in the Oil and Gas (+0.7%) and Consumer Goods (+0.2%).
Market sentiment, as measured by market breadth, was negative (0.8x), as 19 tickers lost, relative to 15 gainers. NEM (-10.0%) and NEIMETH (-10.0%) were the top losers of the day, while PRESTIGE (+10.0%) and ARDOVA (+10.0%) were the top gainers of the day.
Currency
The Naira appreciated by 0.9% w/w to NGN384.00/USD at the I&E window, and by 4.7% w/w to NGN430.00/USD in the parallel market.
Money Market & Fixed Income
The overnight lending rate contracted by 192bps to 4.7%, following banks provisioning for CBN’s wholesale, Invisibles and SMEs FX auctions, and debit for last week’s OMO auction (NGN100.0 billion).
Trading in the NTB secondary market was mixed as the average yield was flat at 2.7%. Elsewhere, average yield expanded by 23bps to 9.9% in the OMO secondary market.
Trading in the Treasury bond secondary market was bullish, as average yield contracted by 8bps to 10.2%. Across the curve, yields at the short (-2bps), mid (-28bps) and long (-1bp) segments, following demand for the MAR-2024 (-15bps), APR-2029 (-45bps) and APR-2037 (-2bps) respectively; the long end was flat.-With Cordros Research
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