Daily Market Update December 3, 2019

December 3, 2019/Cordros Report

Equities

Nigeria’s equities market recorded the second consecutive trading losses this week, as the benchmark index plummeted by 0.17% to 26,944.32 points, driven by losses in MTNN, STANBIC, and GUINNESS. Consequently, the Month-to-Date and the Year-to-Date losses worsened to -0.21% and -14.27% respectively.

Similarly, the total volume of trades dipped by 23.23% to 189.01 million units, valued at NGN2.88 billion and exchanged in 3,314 deals. ACCESS was the most traded stock by volume at 35.41 million units while GUARANTY was the most traded stock by value at NGN1.05 billion respectively.

Mixed performances were recorded across sectors, as Insurance (-0.37%) and Industrial Goods (-0.25%) indices declined, while the Banking (+0.38%) and Consumer Goods (+0.05%) indices advanced; the Oil & Gas index closed flat.

Market sentiment, as measured by market breadth, was negative (0.7x), as 19 tickers recorded declines relative to 13 gainers. IKEJAHOTEL (-9.73%) and CHAMPION (-8.82%) recorded the largest declines, while OKOMUOIL (+9.87%) and ETRANZACT (+9.66%) topped the gainers’ list.

Currency

In today’s trading, the naira depreciated by 0.03% against the US dollar to NGN362.71/USD at the I&E FX window but was flat at NGN360.00/USD at the parallel market.

Money market & fixed income

The overnight lending rate pared by 29bps to 4.00%, amidst buoyant system liquidity which is estimated at NGN335.75 million.

Activities in the Treasury bills market were bullish, as the average yield dipped by 2bps to 7.47%. Yields contracted at the long (-22bps) end of the curve, following buying interest in the 298DTM (-113bps) instrument. On the flip, yield expanded at the short (+7bps) and mid (+21bps) segment of the curve, following sell-offs on 30DTM (+35bps) and 121DTM (+107bps) instruments, respectively. Elsewhere, yields on OMO bills dipped marginally by 1bp to 14.0% following renewed interest by market players.

Similarly, trading in the Treasury bonds market was bullish, as the average yield pared by 12bps to 11.87%. Yields contracted across the short (-10bps) mid (-15bps) and long (-10bps) segments of the curve, following buying interests in the JAN-2022 (-44bps), MAR-2027 (-24bps) and APR-2037 (-16bps) bonds, respectively.

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