WED 10 FEB, 2021-theGBJournal- Negative sentiments persisted in the domestic equities market, as the benchmark index fell by 1.96% to 40,696.01 points. The NSE ASI was dragged by profit-taking on DANGCEM (-7.4%) and some banking stocks – ZENITHBANK (-3.1%) and UBA (-6.9%). Consequently, the Month-to-Date loss increased to -4.1%, while the Year-to-Date gain moderated to +1.1%.
The total volume traded increased by 19.9% to 366.86 million units, valued at NGN5.48 billion, and exchanged in 5,718 deals. ZENITHBANK was the most traded stock by volume at 43.74 million units, while GUARANTY was the most traded stock by value at NGN1.17 billion.
Sectoral performance was broadly negative, as the Industrial Goods (-3.7%), Banking (-3.4%), Insurance (-1.2%) and Consumer Goods (-0.4%) indices recorded declines. The Oil & Gas index closed flat.
Market sentiment, as measured by market breadth, was negative (0.4x), as 35 tickers lost, relative to 13 gainers. CAP (-10.0%) and ETRANZACT (-10.0%) topped the losers’ list, while NIGERINS (+10.0%) and CHAMPION (+9.8%) recorded the largest gains of the day.
Naira
The naira appreciated against the dollar by 0.3% and 0.4% to NGN400.00/USD and NGN478.00/USD, at the I&E window and parallel market, respectively.
Money Market & Fixed Income
The overnight lending rate declined by 350bps to 5.3%, in the absence of any significant outflows from the system.
The NTB secondary market was mixed, as market participants positioned for today’s NTB PMA. Thus, average yield was flat at 1.0%. Elsewhere, average yield at the OMO segment expanded by 26bps to 6.7%.
The Treasury bonds secondary market was bearish, as average yield expanded by 26bps to 8.7%. Across the curve, average yield expanded at the short (+42bps), mid (+45bps) and long (+1bps) segments, due to sell-offs of the MAR-2024 (+141bps), MAR-2027 (+156bps) and JUL-2045 (+6bps) bonds, respectively.-With Cordros Research
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