WED, AUG 26 2020-theG&BJournal– For the sixth consecutive session, the domestic equities market traded with bullish sentiments, as investors’ interest in STANBIC (+4.5%) supported market gain. Thus, the All-Share Index inched higher by 0.2% to close at 25,330.10 points. Consequently, Month-to-Date gain increased to +2.6% while the Year-to-Date loss moderated to -5.6%.
The total trade volume declined by 28.1% to 180.73 million units, valued at NGN1.36 billion and exchanged in 3,411 deals. FIDELITYBK was the most traded stock by volume at 26.57 million units while NESTLE was the most traded stock by value at NGN198.10 million.
Analysing by sectors, the Insurance (-0.9%) and Banking (-0.03%) indices declined while the Consumer Goods (+0.2%) index recorded the sole gain of the day. The Industrial Goods and Oil & Gas indices were flat.
Market sentiment, as measured by the market breadth, was positive (3.0x), as 24 tickers gained relative to 8 losers. FTNCOCOA (+10.0%) and NNFM (+9.8%) topped the gainers’ list, while CORNERST (-9.7%) and AFRIPRUD (-6.7%) recorded the largest losses of the day.
Currency
The naira was flat at the I&E window and parallel market at NGN386.00/USD and NGN477.00/USD, respectively.
Money Market & Fixed Income
The overnight lending rate contracted by 12bps to 2.4%, in the absence of funding pressures on the system.
Trading in the NTB secondary market was mixed, as market participants shifted their focus to the NTB PMA that held today. Thus, average yield was flat at 1.7%. At the PMA, the CBN rolled over maturing bills worth NGN197.60 billion with allotments of NGN20.37 billion of the 91-day, NGN55.85 billion of the 182-day and NGN121.38 billion of the 364-day – at respective stop rates of 1.15% (previously 1.20%), 1.80% (previously 1.39%), and 3.34% (previously 3.12%). On the other hand, average yield contracted by 18bps to 3.2% at the OMO secondary market.
Elsewhere, trading in the Treasury bond secondary market remained bearish, as average yield expanded by 3bps to 7.9%. Across the benchmark curve, yield expanded at the short (+3bps) and long (+6bps) ends, due to sell-offs of the JAN-2022 (+8bps) and APR-2037 (+18bps) bonds, respectively, while they contracted at the mid (-3bps) segment, following demand for the FEB-2028 (-10bps) bond.-with Cordros Research
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