WED, APRIL 22 2020-theG&BJournal– ZENITHBANK (+5.4%), WAPCO (+9.7%) and BUACEMENT (+0.9%) stocks spurred the market’s first gain of the week. Thus, the All-Share Index advanced by 0.7% to 22,780.30 points. Accordingly, Month-to-date gain increased to 7.0% as Year-to-Date losses moderated to -15.1%.
The total volume of trades decreased by 25.6% to 186.23 million units, valued at NGN1.85 billion and exchanged in 3,446 deals. ZENITHBANK was the most traded stock by volume at 30.96 million units while GUARANTY was the most traded stock by value at NGN486.80 million.
Sectoral performance was positive, as all sectoral indices recorded gains save for the Consumer Goods (-0.1%) index. The Banking (+2.8%) index recorded the largest gain, followed by the Insurance (+2.0%), Industrial Goods (+1.4%) and Oil and Gas (+0.2%) indices.
Market sentiment, as measured by market breadth, was positive (6.3x), as 19 tickers gained, relative to 3 losers. NEM (+10.0%) and WAPCO (+9.7%) were the top gainers of the day, while UNIONDAC (-6.5%) and GUINNESS (-6.4%) were the top losers of the day.
Currency
The naira weakened at the parallel market by 1.2% to NGN425.00/USD, while it strengthened by 0.5% to NGN383.00/USD at the I&E FX window.
Money Market and Fixed Income
The overnight lending rate contracted by 53bps to 2.1%, as system liquidity – estimated at NGN911.36 billion – remains healthy.
Trading in the NTB secondary market was bullish, as average yield across instruments contracted by 16bps to 2.7%. Across the curve, yields contracted at the long (-42bps) end following buying interest in the 295DTM (-86bps) instrument; the short and mid segments were flat. Similarly, average yield contracted by 36bps to 10.3% in the OMO secondary market.
Trading in the Treasury bond secondary market was mixed with bullish bias, as average yield pared by 2bps to 10.9%. Across the curve, yields pared at the short (-8bps) end following demand for the MAR-2024 (-25bps) bond, while it expanded at the long end following sell-off of the MAR-2036 (+5bps) bond. Yield at the mid segment remained flat.
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