Daily Market Update for June 29, 2020-Cordros

June 29, 2020/Cordros Report


The domestic equities market resumed trading this week on a positive note, as investors’ interest in NESTLE (+4.7%), FBNH (+1.9%) and DANGSUGAR (+0.8%) stocks, supported the market’s gain. Thus, the All-Share Index advanced by 0.1% to 24,858.89 points. Accordingly, the Month-to-Date and Year-to-Date losses moderated to -1.6% and -7.4%, respectively.

The total volume of trades increased by 24.8% to 158.73 million units, valued at NGN1.64 billion and exchanged in 3,940 deals. GUARANTY was the most traded stock by volume and value at 17.83 million units and NGN401.07 million, respectively.

On sectors, declines were recorded across the Banking (-1.2%), Oil & Gas (-0.6%) and Industrial Goods (-0.1%) indices while the Consumer Goods (+1.9%) and Insurance (+0.2%) indices closed positive.

Market sentiment, as measured by market breadth, was negative (0.6x), as 28 tickers declined, relative to 18 gainers. UNILEVER (-10.0%) and ARDOVA (-10.0%) were the top losers of the day, while OKOMUOIL (+10.0%) and CUTIX (+10.0%) recorded the largest gains.


The naira strengthened at the I&E window by 0.1% to NGN386.00/USD while it was flat at the parallel market at NGN460.00/USD.


The overnight lending rate contracted by 43bps to 15.7%, as system liquidity remains tight.
The Treasury bills secondary market was bullish, as average yield contracted by 8bps to 2.2%. Across the curve, yield contracted at the mid (-21bps) segment, as market participants demanded the 122DTM (-60bps) instrument; yields at the short and long ends were flat. Conversely, average yield expanded slightly by 1bp to 5.0% at the OMO secondary market.
Trading in the Treasury bond secondary market was bullish, as average yield declined by 14bps to 8.5%. Across the curve, yield expanded at the short (+1bp) end, as investors sold off the JUL-2021 (+16bps) bond, while they contracted at the mid (-44bps) and long (-9bps) segments, due to demand for the FEB-2028 (-89bps) and MAR-2050 (-27bps) bonds, respectively.

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