TUE, AUG 25 2020-theG&BJournal– The All-Share Index advanced by 0.3% to 25,291.73 points, shaking off concerns about the economy to sustain Monday’s gains. Demand for cement players- BUACEMENT (+2.8%) and WAPCO (+1.7%) drove the benchmark index higher.
Consequently, Month-to-Date gain increased to +2.4% while the Year-to-Date loss moderated to -5.8%.
The total trade volume increased marginally by 0.1% to 251.34 million units, valued at NGN1.17 billion and exchanged in 3,713 deals. TRANSCORP was the most traded stock by volume at 94.88 million units while UBA was the most traded stock by value at NGN216.45 million.
Across sectors, the Insurance (+1.6%), and Industrial Goods (+1.1%) indices gained, while the Banking (-0.2%) and Consumer Goods (-0.1%) indices declined. The Oil & Gas index was flat.
Market sentiment, as measured by the market breadth, was negative (0.8x), as 15 tickers gained relative to 20 losers. BETAGLAS (-10.0%) and MAYBAKER (-9.9%) recorded the largest losses of the day, while NEM (+9.6%) and WAPIC (+6.3%) topped the gainers’ list.
Currency
The naira was flat at the I&E window and parallel market at NGN385.99/USD and NGN477.00/USD, respectively.
Money Market % Fixed Income
The overnight lending rate contracted by 50bps to 2.5%, in the absence of any significant outflows from the system.
Trading in the NTB secondary market was bearish, as average yield declined by 3bps to 1.7%. Across the curve, average yield at the short (-6bps) end contracted, following buying interest in the 79DTM (-35bps) instrument. Yields were flat at the mid and long segments. Similarly, average yield contracted by 8bps to 3.4% at the OMO secondary market.
Elsewhere, trading in the Treasury bond secondary market was bearish, as average yield expanded by 7bps to 7.9%. Across the benchmark curve, yield expanded at the mid (+4bps) and long (+16bps) segments, due to sell-offs of the JUL-2030 (+15bps) and JUL-2034 (+62bps) bonds, respectively; yield was flat at the short end.=With Cordros Research
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