September 11, 2019/Cordros Report
The Nigerian equities market recorded its first gain this week, as the benchmark index widened by 0.39% to 27,153.53 points – the largest single-day gain since August 23 –, following investors interest in NESTLE and SEPLAT. Thus, the Month-to-Date and Year-to-Date losses moderated to -1.73% and -13.94% respectively.
The total volume of trades decreased by 41.9% to 211.52 million units and valued at NGN1.45 billion. COURTVILLE was the most traded stock by volume at 35.20 million units, while ACCESS was the most traded by value at NGN208.42 million.
Analysing sector performances, gains were recorded across all sectors save for the Insurance sector (-1.25%), as the Oil & Gas (+2.82%), Consumer Goods (+1.60%), Banking (+0.35%) and Industrial Good (+0.16) all closed positive.
Market sentiment, as measured by market breadth, was positive (1.46x) as 19 tickers recorded gains relative to 13 losers. On the gainers’ list, MAYBAKER (+10.0%) and UNIONDAC (+8.70%) recorded the largest gains, while CHAMS (-7.69%) and LIVESTOCK (-7.69%) recorded the largest declines.
The naira traded flat against the US dollar at NGN360.00/USD in the parallel market, while it depreciated by 0.05% to NGN 363.16/USD at the I&E FX window.
Money market & fixed income
The overnight lending rate expanded by 657bps to 19.50%, amidst tight system liquidity. Similarly, we noted that there was a significant presence of market players at the standing lending facility (SLF) window, where NGN92.68 billion was accessed to fund short-term obligations.
Activities in the Treasury bills market were bearish, as the average yield widened by 14bps to 13.26%. Investor sell-offs of the 85DTM (+95bps) and 120DTM (+56bps) bills, led to yield expansions at the short (+24bps) and mid (+21bps) segments, respectively. Conversely, the average yield was unchanged at the long end of the curve. At today’s primary market auction, the CBN fully allotted NGN158.65 billion worth of instruments – NGN15.00 billion of the 91DTM bill, NGN14.00 billion of the 182DTM bill, and NGN129.65 billion of the 364DTM bill – at respective stop rates of 11.10% (previously 11.10%), 11.80% (previously 11.59%) and 13.29% (previously 12.89%).
Trading in the Treasury bonds market was mixed, albeit with a bearish tilt, as average yield expanded by 4bps to 14.27%. Investor sell-offs of the FEB-2020 (+37bps) and JUL-2034 (+18bps) bonds led to yield expansions at the short (+5bps) and long (+7bps) segments respectively. Conversely, demand for the FEB-2028 (-3bps) led to a marginal yield contraction at the mid (-1bp) segment of the curve.