THUR, JAN 23 2020-theG&BJournal-The domestic equities market was on the verge of closing negative, however, late investors’ interests in UBA (+2.94%) stock, drove the market to a positive return of 0.45%, to settle the index point at 29,591.29. Consequently, Year-to-Date return strengthened to 10.24%.
The total volume of trades declined by 37.62% to 196.93 million units, valued at NGN7.71 billion and exchanged in 2,915 deals. UBA was the most traded stock by volume at 26.60 million units, while SEPLAT was the most traded by value at NGN5.27 billion.
All sector indices closed positive, save for the Insurance (-1.77%) index, as the Industrial Goods (+1.94%), Oil & Gas (+1.53%), Consumer Goods (+0.37%) and Banking (+0.13%) indices advanced.
Market sentiment, as measured by market breadth, was mixed (1.0x), as 14 tickers recorded gains and declines respectively. CAP (+10.00%) and UNILEVER (+8.06%) topped the gainers’ list, while LINKASSURE (-8.33%) and WAPIC (-7.89%) recorded the largest declines.
CURRENCY
The naira traded flat against the US dollar at NGN362.00/USD in the parallel market but strengthened by +0.10% to NGN362.51/USD at the I&E FX window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 71bps to 3.57%, on the back of squeezed liquidity, as the CBN mopped-up part of the inflow from OMO maturities (NGN433.76 billion). At the OMO auction today, the CBN fully allotted instruments worth NGN240.76 billion – 180DTM (NGN13.99 billion) and 362DTM (NGN226.31billion) – at respective stop rates of 11.67 % (same as the previous auction), and 13.11% (previously 12.50%); no sales were recorded at the short segment.
Activities at the NTB market were bearish, as average yield expanded by 16bps to close at 3.64%. Yield expanded at the short (+18bps) and mid (+38bps) segment of the curve, following selloffs of the 84DTM (+110bps) and 98DTM (+94bps) bills, respectively. Elsewhere, the average yield at the OMO secondary market traded flat at 13.06%.
Following the outcome of yesterday’s bond auction which was oversubscribed, the treasury bond secondary market saw bullish sentiments as investors looked to fill their lost bid. Consequently, average yield contracted by 24bps to 9.91%. Yields contracted across the short (-42bps), mid (-13bps) and long (-15bps) segment of the curve following buying interest in the APR-2023 (-63bps), FEB-2028 (-18bps) and JUL-2034 (-25bps) bonds.-Courtesy Cordros Research
twitter:@theGBJournal|email: info@govandbusinessjournal.com.ng|
