WED, APRIL 15 2020-theG&BJournal- Trading in the domestic bourse remained bullish as investors demanded for DANGCEM (10.0%) and Tier 1 banks’ stocks persisted. Consequently, the All-Share Index gained by 3.0% to 22,539.94 points – the biggest gain since increasing by 3.5% on 8th January 2020. Accordingly, Month-to-date gain increased to 5.8% as Year-to-Date losses moderated to -16.0%.
The total volume of trades decreased by 41.5% to 326.44 million units, valued at NGN3.34 billion and exchanged in 5,166 deals. FBNH was the most traded stock by volume at 74.76 million units while ZENITHBANK was the most traded stock by value at NGN1.20 billion.
Sectoral performance was positive, as all sector indices recorded gains, save for the Insurance (-0.5%) index that declined. The Banking (+4.5%) index recorded the largest gain, followed by the Industrial Goods (+3.0%), Consumer Goods (+2.5%) and Oil and Gas (+1.1%) indices.
Market sentiment, as measured by market breadth, was positive (2.7x), as 27 tickers gained, relative to 10 losers. NEIMETH (+10.0%) and CHAMPION (+10.0%) recorded the largest gains, while ARBICO (-9.8%) and WEMABANK (-9.7%) were the top losers of the day.
Currency
The naira traded flat at the parallel market at NGN415/USD while it strengthened by 0.3% to NGN385.63/USD at the I&E FX window.
Money market/fixed income
The overnight lending rate contracted by 41bps to 2.4% in the absence of any significant outflows from the system.
Trading in the NTB secondary market was mixed, albeit with a bearish tilt as average yield across instruments expanded by 2bps to 3.1%. Across the curve, yield expanded at the long (+6bps) end, as investors sold off the 211DTM (+14bps) instrument; the short and mid segments were flat. Meanwhile, average yield contracted by 42bps to 12.1% in the OMO secondary market. At today’s NTB PMA, the CBN fully allotted NGN58.49 billion worth of bills – NGN5.85 billion of the 91-day, NGN3.50 billion of the 182-day and NGN49.14 billion of the 364-day – at respective stop rates of 1.93% (previously 2.20%), 2.74% (previously 3.20%), and 4.00% (previously 4.30%).
Trading in the Treasury bond secondary market remained bullish as average yield contracted by 11bps to 11.1%. Across the curve, yields contracted at the short (-14bps), mid (-14bps) and long (-6bps) segments of the curve, following buying interests in the JUL-2021 (-63bps), APR-2029 (-28bps) and MAR-2036 (-34bps) bonds, respectively.-With Cordros Research
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