May 28, 2020/Cordros Report
Equity sentiments in the domestic market were negative, as investors took profit from most tier 1 banking stocks. Specifically, the All-Share index moderated by 0.22% to 25,221.23 points. Against the foregoing, Month-to-Date return declined to 9.56%, as Year-to-Date losses rose marginally to -6.04%.
The total volume of trades dipped by 40.13% to 348.21 million units, valued at NGN3.43 billion and exchanged in 7,148 deals. FBNH was the most traded stock by volume at 47.39 million units, while GUARANTY was the most traded by value at NGN576.21 million.
On a sectoral basis, gains in the Industrial Goods (+0.23%) and Insurance (+1.16%) indices were not enough to mask losses across the Banking (-2.79%), Oil and Gas (-0.63%), and Consumer Goods (-0.07%) indices.
Market sentiment, as measured by market breadth, was positive (1.0x), as 18 tickers gained, while another 18 tickers recorded losses. CUTIX (+9.94%) and MAYBAKER (+9.71%) were the top gainers of the day, while ETI (-9.91%) and IKEJAHOTEL (-8.73%) were the top losers of the day.
The naira appreciated by 0.04% to NGN386.33/USD at the I&E window while it strengthened by a steeper 0.44% to NGN453.00/USD at the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate dipped significantly by 1218bps to 3.24%. It is worth noting that CBN elected to cut benchmark MPR by 100bps, a move aimed at curtailing the impact of COVID-19 on economic growth.
Trading in the NTB secondary market was mixed, albeit with a bullish bias. Specifically, average yield dipped by 3bps to 2.14%. Across the curve, yields moderated at the short (-7bps) and mid (-7bps) segments, as market participants accumulated the 50DTM (-30bps) and 169DTM (-39bps) instruments, respectively. At the long (+5bps) end, yield expanded, following sell-off on the 183DTM (+21bps) instrument.
As with the NTB, trading in the Treasury bond secondary market was mixed. Notably, the average yield contracted marginally by 2bps to 10.36%. Across the curve, yield at the long (-6bps) segments contracted, following buying interests in the MAR-2036 (-17bps) bonds; the short and mid segments were flat.