THUR, JULY 02 2020-theG&BJournal-The equities market reversed yesterday’s gains following selloffs across banking stocks. Precisely, the All-Share Index declined by 0.9% to 24,374.40 points. Accordingly, Month-to-Date and Year-to-Date losses printed -0.4% and -9.2%, respectively.
The total volume of trades decreased by 9.0% to 180.12 million units, valued at NGN1.85 billion and exchanged in 3,889 deals. UBA was the most traded stock by volume at 23.93 million units while GUARANTY was the most traded stock by value at NGN446.00 million.
Sectoral performances were broadly negative following losses in the Banking (-4.6%), Insurance (-1.0%), Consumer Goods (-0.9%), Oil & Gas (-0.3%) and Industrial Goods (-0.02%) indices.
Market sentiment, as measured by market breadth, was negative (0.3x), as 26 tickers declined, relative to 7 gainers. CAPHOTEL (-10.0%) and GLAXOSMITH (-10.0%) were the top losers of the day, while NEIMETH (+9.4%) and JAIZBANK (+7.3%) recorded the largest gains.
Currency
The naira strengthened at the I&E window by 0.1% to NGN386.00/USD while it was flat at the parallel market at NGN462.00/USD.
Money Market and Fixed Income
The overnight lending rate contracted by 930bps to 3.6%, as inflows from OMO maturities (NGN333.31 billion) boosted system liquidity.
The NTB secondary market was mixed, as the average yield was flat at 2.1%. Elsewhere, average yield expanded by 9bps to 5.2% at the OMO secondary market.
Trading in the Treasury bond secondary market was bullish, as average yield contracted by 40bps to 8.1%. Across the curve, yield contracted at the short (-49bps), mid (-65bps) and long (-14bps) segments, driven by demand for the MAR-2024 (-81bps), JUL-2030 (-203bps) and JUL-2034 (-51bps) bonds, respectively.-With Cordros Research
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