MON, JUN 15 2020-theG&BJournal-Trading in the domestic equities market started the week on a negative note, as profit taking in heavyweights, MTNN (-1.7%) and BUACEMENT (-1.8%), and some Tier 1 bank names, caused the market to decline. For context, the All-Share Index declined by 0.9% to 24,954.32 points – the biggest move since falling 1.2% on June 05, 2020. Thus, Month-to-Date and Year-to-Date losses increased to -1.2% and -7.0%, respectively.
The total volume of trades decreased by 29.5% to 237.65 million units, valued at NGN1.61 billion and exchanged in 4,808 deals. FBNH was the most traded stock by volume at 24.35 million units while ZENITHBANK was the most traded stock by value at NGN392.36 million.
Analysing by sectors, performance was weak, following declines across the board, save for the Insurance (+0.9%) index that gained. The Banking (-1.9%) index recorded the largest decline, followed by the Industrial Goods (-1.4%), Oil and Gas (-0.3%), and Consumer Goods (-0.03%) indices.
Market sentiment, as measured by market breadth, was negative (0.6x), as 25 tickers declined, relative to 16 gainers. PRESTIGE (-10.0%) and NEIMETH (-9.7%) were the top losers of the day, while REDSTAREX (+10.0%) and FIDSON (+10.0%) recorded the largest gains.
Currency
The naira depreciated by 0.2% at the I&E window to NGN386.50/USD while it was flat at NGN450.00/USD at the parallel market.
Money Market & Fixed Income
The overnight lending rate contracted by 291bps to 6.9%, in the absence of significant outflows from the system.
Trading in the NTB secondary market was mixed, as average yield was flat at 3.4%. Elsewhere, average yield contracted by 5bps to 4.9% in the OMO secondary market.
Trading in the Treasury bond secondary market was bullish, as average yield contracted by 13bps to 9.9%. Across the benchmark curve, yield contracted at the short (-12bps), mid (-8bps) and long (-17bps) ends, due to demand for the MAR-2025 (-55bps), FEB-2028 (-30bps) and APR-2037 (-29bps) bonds, respectively.
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