The domestic bourse started the week’s trading on a positive note, as investors’ interest in banking stocks and NB (+10.0%), supported the market. This is despite the decline in market heavyweight, DANGCEM (-8.5%). Thus, the All-Share index advanced by 0.7% to 25,221.23 points. Accordingly, Month-to-Date return increased to 9.6%, as Year-to-Date losses moderated to -6.0%.
The total volume of trades increased by 124.1% to 581.61 million units, valued at NGN5.59 billion and exchanged in 7,759 deals. FBNH was the most traded stock by volume at 120.86 million units, while GUARANTY was the most traded by value at NGN1.54 billion.
Sectoral performance was fairly positive, as gains in the Banking (+5.4%) and Consumer Goods (+3.1%) indices masked declines in the Industrial Goods (-2.0%), Insurance (-0.6%), and Oil and Gas (-0.3%) indices.
Market sentiment, as measured by market breadth, was positive (2.8x), as 31 tickers gained, relative to 11 losers. NB (+10.0%) and STANBIC (+9.9%) were the top gainers of the day, while ARDOVA (-10.0%) and REGALINS (-8.7%) were the top losers of the day.
The naira depreciated by 0.2% to NGN386.50/USD at the I&E window while it strengthened by 1.1% to NGN455.00/USD at the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate pared by 3bps to 15.6%, in the absence of significant outflows from the system.
Trading in the NTB secondary market was mixed, as average yield was flat at 2.2%. At today’s NTB PMA, the CBN fully allotted NGN59.37 billion worth of bills – NGN20.37 billion of the 91-day, NGN19.16 billion of the 182-day and NGN19.84 billion of the 364-day – at respective stop rates of 2.45% (previously 2.50%), 2.72% (previously 2.85%), and 4.02% (previously 3.84%). Elsewhere, average yield expanded by 1bp to 6.0% in the OMO secondary market.
Trading in the Treasury bond secondary market was bullish, as average yield contracted by 6bps to 10.4%. Across the benchmark curve, yield at the short (-11bps) and mid (-9bps) segments contracted, following buying interests in the APR-2023 (-38bps) and APR-2029 (-20bps) bonds, respectively; the long end was flat.