TUE, APRIL 14 2020-theG&BJournal- The domestic equities market resumed this week’s trading on a positive note following investors’ interest in DANGCEM (+3.4%), MTNN (+3.2%) and Tier 1 banks’ stocks. Thus, the All-Share Index gained 2.3% to 21,879.95 points. Accordingly, Month-to-date gain increased to 2.72% as Year-to-Date losses moderated to -18.5%.
The total volume of trades increased by 77.1% to 557.82 million units, valued at NGN2.62 billion and exchanged in 5,310 deals. FBNH was the most traded stock by volume at 51.82 million units while ZENITHBANK was the most traded stock by value at NGN505.51 million.
Sectoral performance was positive, as gains in the Banking (+4.5%), Consumer Goods (+2.2%) and Oil and Gas (+1.3%) indices masked the losses recorded in the Insurance (-0.3%) and Industrial Goods (-0.1%) indices.
Market sentiment, as measured by market breadth, was positive (2.4x), as 29 tickers gained, relative to 12 losers. OANDO (+10.0%) and NB (+9.9%) recorded the largest gains, while PZ (-9.1%) and REDSTAREX (-5.9%) were the top losers of the day.
CURRENCY
The naira traded flat at the parallel market at NGN415/USD while it weakened at the I&E FX window by 0.5% to NGN386.63/USD, respectively.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 14ppts to 2.8%, as system liquidity –estimated at NGN512.10 billion– became buoyant.
Trading in the NTB secondary market was bullish, as average yield across instruments contracted by 25bps to 3.1%. Across the curve, yield contracted at the mid (-60bps) and long (-5bps) segments as investors demanded the 170DTM (-166bps) and 275DTM (-61bps) instruments, respectively; the short end was flat. Conversely, average yield expanded by 13bps to 12.5% in the OMO secondary market.
Trading in the Treasury bond secondary market was bullish as average yield contracted by 8bps to 11.2%. Across the curve, yields contracted at the short (-40bps) and mid (-3bps) segments of the curve, following buying interests in the MAR-2024 (-25bps) and JAN-2026 (-59bps) bonds, respectively, while yield at the long (1bp) end expanded as investors sold off the APR-2037 (+5bps) bond.-With Cordros Research
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