THUR, FEB 27 2020-theG&BJournal- In today’s trading, the dual impact of depressed market sentiment and unimpressive earnings took a toll on the domestic equities market. Consequently, the All Share Index pared by 0.62% to 26,808.24 points, on the account of investors’ sell-off of Banking stocks. Month-to-Date and Year-to-Date losses increased to -7.06% and -0.13%, respectively.
The total volume of trades increased by 1.38% to 221.54 million units, valued at NGN4.48 billion and exchanged in 3,606 deals. ZENITHBANK was the most traded stock by volume at 45.57 million units, while NB was the most traded by value at NGN1.78 billion.
On sector performance, losses in the Banking (-1.38%), Consumer Goods (-0.89%), and Oil & Gas (-0.56%) indices masked the gain recorded in the insurance (+0.92) index; the Industrial Goods closed flat.
Market sentiment, as measured by market breadth, was negative (0.7x), as 18 tickers declined, relative to 13 gainers. FLOURMILL (-10.00%) and NPFMCRFBK (-10.00%) topped the laggards list, while JAIZBANK (+9.47%) and LAWUNION (+7.95%) were the top gainers for the day.
CURRENCY
The naira traded flat against the US dollar at NGN360.00/USD in the parallel market, while it strengthened by 0.08% to NGN365.22/USD at the I&E FX window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 40bps to 2.50% as the system liquidity increased following inflows from OMO maturities (NGN927.75 billion).
Trading in the NTB secondary market was bearish as average yield contracted by 6bps to 4.00%. Yields contracted at the mid (-17bps) and long (-3bps) segments, following buying interest in the 182DTM (-38bps) and 196DTM (-23bps) instruments, respectively; the long end of the curve was flat. Similarly, the average yield in the OMO secondary market contracted by 6bps to close at 11.04%.
Trading in the Treasury bond secondary market was bullish, as average yield contracted by 2bps to 8.99%. Yields contracted across the short (-3bps), mid (-1bp) and long (-1bp) segments of the curve, driven by buying interest in APR-2023 (-9bps), JAN-2026 (-28bps), and MAR-2036 (-6bps) instruments, respectively.-Courtesy Cordros Securities.
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