… Treasury bond secondary market bearish, as the average yield expanded slightly by 1bp to 12.2%
TUE 11 MAY, 2021-theGBJournal-The domestic equities market extended yesterday’s gain as investors’ demand for DANGCEM (+1.6%) notched the All-Share Index higher by 0.2% to 39,382.96 points. Accordingly, Month-to-Date and Year-to-Date losses moderated to -1.1% and -2.2%, respectively.
The total volume of trades decreased by 8.5% to 296.60 million units, valued at NGN3.36 billion, and exchanged in 4,265 deals. ACCESS was the most traded stock by volume at 58.56 million units, while ZENITHBANK was the most traded stock by value at NGN609.74 million.
On sectors, the Insurance (+1.3%) and Industrial Goods (+0.7%) indices recorded gains while the Banking (-0.3%) and Oil & Gas (-0.1%) indices declined. The Consumer Goods index was flat.
As measured by market breadth, market sentiment was positive (1.2x), as 20 tickers gained relative to 17 losers. MEYER (+9.6%) and PRESCO (+9.6%) topped the gainers’ list while REGALINS (-8.8%) and HONYFLOUR (-5.8%) recorded the most significant losses of the day.
Currency
The naira depreciated at the I&E window by 0.1% to NGN411.25/USD but was flat at NGN483.00/USD in the parallel market.
Money Market
The overnight lending rate expanded by 50bps to 15.5%, as funding pressures outweighed inflows from OMO maturities (NGN90.00 billion).
The NTB secondary market traded on a bearish note, as the average yield expanded by 7bps to 5.1%. Across the curve, average yield declined at the mid (-4bps) segment following demand for the 170DTM (-27bps) instrument, and expanded at the long (+18bps) end due to sell-off of the 352DTM (+35bps) bill; the short end closed flat. Elsewhere, the average yield at the OMO segment was flat at 8.5%.
Trading in the Treasury bond secondary market was bearish, as the average yield expanded slightly by 1bp to 12.2%. Across the benchmark curve, average yield expanded at the short (+2bps) and long (+1bp) ends due to sell-offs of the JAN-2022 (+12bps) and MAR-2036 (+5bps) bonds, respectively. Average yield was unchanged at the short end.
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