TUE, JAN 21 2020-theG&BJournal-The domestic bourse halted its bullish run as the NSE All-Share Index declined by 0.83% to 29,462.76 points, following profit taking in Tier I banking stocks. Subsequently, the Year-to-Date return moderated to +9.76%.
Similarly, the total volume of trades declined by -11.26% to 272.84 million units, valued at NGN3.71 billion and exchanged in 4,945 deals. ZENITHBANK was the most traded stock by volume and value at 57.81 million units and NGN1.31 billion, respectively.
On sectors, significant losses recorded in the Banking sector dampened the market performance, after the index slid by -3.58%; the Industrial Goods (-0.45%) index also declined. On the flip side, the Consumer Goods (+0.34%), Oil & Gas (+0.29%) and Insurance (+0.70%) indices closed positive.
Market sentiment, as measured by market breadth, was negative (0.9x), as 16 tickers declined, relative to 14 gainers. ARBICO (-9.97%) and ETERNA (-9.72%) recorded the largest declines, while LAWUNION (+9.09%) and UNITYBNK (+6.15%) topped the gainer’s list.
CURRENCY
The naira traded flat against the US dollar at NGN362.00/USD in the parallel market, while it strengthened by 0.05% to NGN362.20/USD at the I&E FX window.
MONEY MARKET & FIXED INCOME
The overnight lending rate eased by 40bps to 3.10%, as the system liquidity remained buoyant.
Trading in the NTB secondary market was quiet, as yields across all segments were unchanged. However, investors’ sell-offs on the mid and long-dated bills, led to a marginal yield expansion of 2bps at the OMO secondary market.
Trading in the Treasury bonds market was bullish, as the average yield dipped by 10bps to 10.15%. Yields contracted across the short (-1bps) and mid (-3bps) segments of the curve following buying interest in the JAN-2022 (-31bps) and FEB-2028 (-30bps) bonds, respectively. On the flip side, a sell-off of the JUL-2034 (+5bps) bonds, led to a marginal yield expansion at the long (+1bp) end of the curve.-Courtesy Cordros Research
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