THUR, JUN 04 2020-theG&BJournal-The domestic equities market closed on a negative note for the first time this month, as profit-taking in MTNN (-1.7%) dampened market performance. Precisely, the All-Share Index declined by 0.4% to 25,312.05 points – the biggest move since falling 1.1% on May 12, 2020. Accordingly, Month-to-Date return decreased to 0.2%, as Year-to-Date losses increased to -5.7%.
The total volume of trades decreased by 23.5% to 270.19 million units, valued at NGN5.30 billion and exchanged in 4,550 deals. FBNH was the most traded stock by volume at 41.35 million units while DANGCEM was the most traded stock by value at NGN2.57 billion.
Sectoral performance was negative, as losses in the Banking (-2.1%), Oil and Gas (-0.4%) and Insurance (-0.3%) indices masked the gains recorded in the Consumer Goods (+0.9%) and Industrial Goods (+0.2%) indices.
Market sentiment, as measured by market breadth, was negative (0.9x), as 17 tickers lost, relative to 15 gainers. CUTIX (-9.6%) and LASACO (-7.4%) were the top losers of the day, while UAC-PROP (+10.0%) and LINKASSURE (+9.8%) were the top gainers of the day.
CURRENCY
The naira depreciated by 0.1% and 0.5% to NGN386.70/USD and NGN447.00/USD at the I&E window and parallel market, respectively.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 20bps to 2.5%, as system liquidity was boosted by inflow from OMO maturities (NGN149.68 billion). At today’s OMO auction, the CBN fully allotted NGN70.00 billion worth of bills – NGN20.00 billion of the 82-day, NGN20.00 billion of the 173-day and NGN30.00 billion of the 341-day – at respective stop rates of 4.95%, 7.79%, and 8.99%.
Trading in the NTB secondary market was mixed, as average yield was flat at 3.3%. Elsewhere, average yield contracted by 27bps to 5.1% in the OMO secondary market.
Trading in the Treasury bond secondary market was mixed, albeit with a bullish tilt, as average yield pared by 5bps to 10.2%. Across the benchmark curve, yield at the short (+2bps) end expanded, as investors sold off the JUL-2021 (+9bps) bond, while they contracted at the mid (-23bps) segment following demand for the FEB-2028 (-61bps) bond; the long end traded flat.-With Cordros Research
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