Nigerian Bourse Rises by 0.27% amid Sustained Bullish Activity

June 2, 2020/Cordros Report

EQUITIES

The domestic bourse sustained its positive momentum from yesterday, as the All-Share index advanced by 0.3% to 25,383.43 points. Today’s performance was supported by gains in DANGCEM (+1.4%), GUARANTY (+2.2%), and MTNN (+0.4%) stocks. Consequently, Month-to-Date return increased to 0.5%, as Year-to-Date losses moderated to -5.4%.

The total volume of trades increased by 49.2% to 377.88 million units, valued at NGN6.06 billion and exchanged in 4,585 deals. NB was the most traded stock by volume and value at 50.46 million units and NGN2.22 billion, respectively.

Analysing by sectors, the Insurance (+0.4%) and Industrial goods (+0.2%) indices recorded gains, against losses recorded in the Consumer Goods (-0.1%) and Banking (-0.1%) indices. The Oil and Gas index remained flat.

Market sentiment, as measured by market breadth, was positive (1.1x), as 19 tickers gained, relative to 18 losers. NEIMETH (+9.8%) and UPL (+9.7%) were the top gainers of the day, while PRESTIGE (-10.0%) and OMATEK (-9.7%) were the top losers of the day.

CURRENCY
 
The naira was flat at NGN385.50/USD at the I&E window, while it weakened by 1.1% to NGN445.00/USD at the parallel market.

MONEY MARKET & FIXED INCOME

The overnight lending rate contracted by 25bps to 2.8%, in the absence of significant outflows from the system.

Trading in the NTB secondary market was mixed, as average yield was flat at 2.1%. Elsewhere, average yield expanded by 10bps to 5.6% in the OMO secondary market.

Trading remained bullish in the Treasury bond secondary market, as average yield contracted by 5bps to 10.3%. Across the benchmark curve, yield at the short (-3bps), mid (-9bps) and long (-5bps) segments contracted, following buying interests in the MAR-2024 (-44bps), MAR-2027 (-20bps) and JUL-2034 (-18bps) bonds, respectively.

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