THUR, APRIL 02 2020-theG&BJournal- In today’s trading session, the domestic bourse retraced as late interest in DANGCEM (+9.9%) spurred the market’s first gain of the week. Consequently, the All-Share Index advanced by 0.1% to 21,121.20 points. Accordingly, Month-to-date and Year-to-Date losses eased to -0.8% and -21.3%, respectively.
The total volume of trades increased to 65.4% to 255.59 million units, valued at NGN2.86 billion and exchanged in 4,418 deals. ZENITHBANK was the most traded stock by volume and value at 100.83 million units and NGN1.11 billion, respectively.
Analysing by sectors, demand for DANGCEM caused the Industrial Goods (-2.6%) index to close positive. However, the Banking (-2.2%), Consumer Goods (-1.9%) and Insurance (-0.8%) indices closed negative; the Oil and Gas index remained flat.
Market sentiment, as measured by market breadth, was negative (0.4x), as 19 tickers lost, relative to 7 gainers. NB (-9.3%) and HONYFLOUR (-8.2%) were the top losers, while DANGCEM (+9.9%) and LIVESTOCK (+9.4%) recorded the largest gains of the day.
Currency
The naira traded flat at NGN415/USD at the parallel market and strengthened by 0.7% to NGN383.00/USD at the I&E FX window.
Money Market & Fixed Income
The overnight lending rate contracted by 300bps to 3.1%, as inflows from OMO maturities (NGN288.54 billion) further improved liquidity. At today’s OMO auction, the CBN offered instruments worth NGN110.00 billion, however, only NGN4.00 billion worth at the long end was sold at a stop rate of 12.8% (previously 13.0%).
Trading in the NTB secondary market remained bullish as average yield across instruments contracted by 13bps to 3.5%. Across the curve, yields contracted at the mid (-52bps) and long (-2bps) segments following demand for the 149DTM (-104bps) and 289DTM (-10bps) instruments. However, sell-off of the 72DTM (+121bps) caused yield at the short (+28bps) end to expand. Similarly, average yield contracted by 25bps to 14.3% in the OMO secondary market.
The Treasury bond secondary market remained bullish as average yield pared by 1bp to 11.8%. Across the curve, yields contracted at the short (-1bp) and long (-3bps) segments of the curve, following buying interest in the JUL-2021 (-2bps) and JUL-2034 (-17bps) bonds, respectively; the mid segment was flat.
|twitter:@theGBJournal|email: info@govandbusinessjournal.com.ng|
