THUR 03 JUNE, 2021-theGBJournal- The domestic bourse extended yesterday’s gain, following investors’ interest in MTNN (+1.5%). Specifically, the All-Share Index advanced by 0.2% to 38,548.24 points. Accordingly, Month-to-Date gain increased to +0.3%, while Year-to-Date loss moderated to -4.3%.
The total volume of trades increased by 59.1% to 249.69 million units, valued at NGN1.88 billion and exchanged in 3,524 deals. SOVRENINS was the most traded stock by volume at 35.51 million units, while ZENITHBANK was the most traded stock by value at NGN632.28 million.
Sectoral performance was mixed, as the Consumer Goods (+0.2%), Insurance (+0.1) and Oil & Gas (+0.1%) indices posted gains. On the other hand, the Banking (-0.5%) index declined, while the Industrial Goods index was flat.
As measured by market breadth, market sentiment was positive (1.4x), as 19 tickers gained relative to 14 losers. UPL (+10.0%) and BERGER (+9.8%) were the top gainers of the day, while CWG (-9.6%) and UBN (-6.7%) topped the losers’ list.
Currency
The naira was flat at the I&E window at NGN410.90/USD but depreciated by 0.2% to NGN499.00/USD in the parallel market. The CBN Official rate stood 0.01% up to N410.22/US$.
Money Market & Fixed Income
The overnight lending rate contracted by 58bps to 14.3%, as inflows into the system outweighed outflows for CBN’s weekly OMO auction.
Trading in the NTB secondary market was mixed, albeit with a bearish tilt, as the average yield expanded slightly by 1bp to 6.1%. Across the curve, the average yield contracted at the short (-31bps) and mid (-5bps) segments following demand for the 7DTM (-42bps) and 98DTM (-15bps) bills, respectively, but expanded at the long (+25bps) end due to sell-off of the 40DTM (+40bps) bill. Elsewhere, the OMO segment’s average yield expanded by 15bps to 10.0%.
The Treasury bond secondary market was bullish, as the average yield contracted by 18bps to 12.1%. Across the benchmark curve, the average yield contracted at the short (-31bps) and long (-16bps) ends due to the demand for JAN-2026 (-39bps) and MAR-2035 (-43bps) bonds, respectively; the mid-segment closed flat.
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