TUE, FEB 18 2020-theG&BJournal- The bears continue to dominate in the domestic equities market, as the NSE All-Share Index shed 0.1% to 27547.56 points, following sell-offs of tier-1 Banking stocks. Consequently, the Month-to-date loss increased to 4.4%, while the Year-to-Date gain moderated to 2.6%.
Moreover, the total volume of trades increased by 24.9% to 168.07 million units, valued at NGN2.16 billion and exchanged in 3,075 deals. ZENITHBANK was the most traded stock by volume and value at 48.99 million units and NGN953.24 million, respectively.
On sector performance, the Banking (-0.5%) and Consumer Goods (-0.01%) indices declined, while the insurance (+0.2%) index gained. The Industrial Goods and Oil and Gas indices closed flat.
Market sentiment, as measured by market breadth, was negative (0.9x), as 13 tickers declined, relative to 12 gainers. LAWUNION (-4.8%) and JAPAULOIL (-4.9%) recorded the largest declines, while WAPIC (+10.0%) and UAC-PROP (+10.0%) topped the gainer’s list.
CURRENCY
The naira traded flat against the US dollar at NGN360.00/USD in the parallel market and also traded flat at NGN364.92/USD at the I&E FX window.
MONEY MARKET & FIXED INCOME
The overnight lending rate widened by 67bps to 4.2%, as system liquidity – estimated at NG396.7 billion – remains buoyant.
Trading in the NTB secondary market was bearish, as the average yield expanded by 28bps to 4.1%. Yields expanded at the long (+55bps) end of the curve, following the sell-off of the 331DTM (+164bps) instrument. On the flip, the short and mid segments of the curve traded flat. Elsewhere, average yield contracted by 9bps to 12.9% in the OMO secondary market.
The Treasury bonds market was bearish, as average yield expanded by 9bps to 10.2%. Yields contracted at the short (+29bps) and long (+1bp) end, following sell-offs of the JUL-2021 (+104bps) and APR-2049 (+3bps) bonds, respectively. However, yields traded flat at the mid-segment of the curve.-Courtesy Cordros Securities.
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