MON, JUN 08 2020-theG&BJournal- The domestic equities market started the week’s trading on a positive note, as the All-Share Index advanced by 0.9% to 25,249.90 points – the biggest move since rising 1.8% on May 22, 2020. The performance was driven by investors’ interest in BUACEMENT (+3.8%), MTNN (+1.7%) and some Tier 1 bank stocks. Thus, Month-to-Date and Year-to-Date losses moderated to -0.1% and -5.9%, respectively.
The total volume of trades increased by 7.5% to 230.49 million units, valued at NGN2.17 billion and exchanged in 4,621 deals. FBNH was the most traded stock by volume at 34.50 million units while GUARANTY was the most traded stock by value at NGN550.14 million.
Sectoral performance was positive, following gains in the Industrial Goods (+2.4%), Insurance (+1.6%), Banking (+1.1%), Oil and Gas (+0.2%) and Consumer Goods (+0.04%) indices.
Market sentiment, as measured by market breadth, was positive (2.8x), as 31 tickers gained, relative to 11 losers. WAPIC (+10.0%) and FIDSON (+9.8%) were the top gainers of the day, while JAPAULOIL (-10.0%) and CORNERST (-9.1%) recorded the largest losses of the day.
Currency
The naira depreciated by 0.2% and 0.7% to NGN387.33/USD and NGN450.00/USD at the I&E window and parallel market, respectively.
Money & Fixed Income
The overnight lending rate contracted by 128bps to 15.4%, 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 14bps to 5.0% in the OMO secondary market.
Trading in the Treasury bond secondary market was mixed, albeit with a bullish tilt, as average yield pared by 4bps to 10.0%. Across the benchmark curve, yield contracted at the short (-6bps) and long (-9bps) ends, due to demand for the JAN-2026 (-55bps) and MAR-2050 (-27bps) bonds, respectively, while they expanded at the mid (+2bps) segment due to sell-off of the APR-2029 (+5bps) bond.-With Cordros Research.
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