MON, MARCH 23 2020-theG&BJournal- Trading in the domestic bourse resumed on a bearish note, as investors took profits off Tier I bank stocks. Consequently, the All-Share Index declined by 2.2% to 21,700.98 points and the Month-to-Date and Year-to-Date losses increased to -17.2% and -19.2%, respectively.
The total volume of trades increased by 22.4% to 464.36 million units, valued at NGN3.87 billion and exchanged in 5,883 deals. ZENITHBANK was the most traded stock by volume and value at 120.46 million units and NGN1.30 billion, respectively.
All sector indices closed negative with the Banking (-9.0%) index incurring the biggest loss. The Consumer Goods (-3.67%), Insurance (-1.5%), Oil and Gas (-0.8%), and Industrial Goods (-0.8%) indices all followed suit.
Market sentiment, as measured by market breadth, was negative (0.4x), as 25 tickers declined, relative to 9 gainers. DANGSUGAR (-10.0%) and NB (-10.0%) were the top losers, while NEIMETH (+10.0%) and MAYBAKER (+8.9%) recorded the largest gains of the day.
CURRENCY
The naira weakened by 5.7% and 2.3% in the parallel market and I&E FX window to NGN403/USD and NGN380.75/USD, respectively.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 163bps to 6.9%, as bank’s provisioned for CBN’s weekly Wholesale, Invisibles and SMEs FX auctions.
Activities in the NTB secondary market were bullish as average yield contracted by 51bps to 3.5%. Yields declined at the mid (-92bps) and long (-45bps) segments of the curve following buying interest in the 182DTM (-136bps) and 210DTM (-148bps) instruments, respectively; yields were flat at the short end. Conversely, average yield expanded in the OMO secondary market by 28bps to 16.8%.
Trading in the Treasury bond secondary market started the week bearish, as average yield expanded by 18bps to 11.9%. Across the curve, yields expanded at the short (+44bps), mid (+1bp) and long (+4bps) segments of the curve, following sell-offs of the MAR-2024 (+202bps), MAR-2027 (+7bps) and APR-2049 (+16bps) bonds, respectively.-With Cordros Research
|twitter:@theGBJournal|email: info@govandbusinessjournal.com.ng|
