TUE, APRIL 07 2020-theG&BJournal- The domestic bourse closed the day’s trading on a positive note, as investors demand for MTNN (+3.0%), WAPCO (+9.7%) and banking stocks spurred the market’s first gain of the week. Consequently, the All-Share Index advanced by 1.2% to 20,925.19 points – the biggest gain since March 3, 2020. Accordingly, Month-to-date and Year-to-Date losses moderated to -1.8% and -22.0%, respectively.
The total volume of trades increased by 328.8% to 1.44 billion units, valued at NGN5.57 billion and exchanged in 4,647 deals. GUARANTY was the most traded stock by volume and value at 161.05 million units and NGN2.90 billion, respectively.
Sectoral performance was mixed, following gains in the Banking (+3.2%) and Industrial Goods (+0.3%) indices, and losses in the Insurance (-2.2%), Oil and Gas (-0.6%) and Consumer Goods (-0.1%) indices.
Market sentiment, as measured by market breadth, remained positive (2.3x), as 23 tickers gained, relative to 10 losers. FBNH (+10.0%) and STERLNBANK (+9.9%) recorded the largest gains, while CADBURY (-10.0%) and ARDOVA (-9.8%) were the top losers of the day.
Currency
The naira traded flat at the parallel market at NGN415/USD while it weakened by 0.5% to NGN384.83/USD at the I&E FX window.
Money Market & Fixed Income
The overnight lending rate contracted by 97bps to 3.8%, in the absence of any significant outflow from the system.
Trading in the NTB secondary market remained mixed, albeit with a bullish tilt, as average yield across instruments pared by 3bps to 3.2%. Across the curve, yield contracted at the long (-9bps) segment as investors demanded the 296DTM (-62bps) instrument, and expanded at the mid (+2bps) segment following sell-off of the 142DTM (+52bps) instrument. On the other hand, yield at the short end remained flat. Similarly, average yield contracted by 36bps to 13.2% in the OMO secondary market.
The Treasury bond secondary market remained bullish as average yield contracted by 18bps to 11.4%. Across the curve, yields contracted at the short (-20bps), mid (-21bps) and long (-13bps) segments of the curve, following buying interests in the MAR-2024 (-49bps), MAR-2027 (-42bps) and APR-2037 (-39bps) bonds, respectively.-With Cordros Research
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