MTNN, Mobil, Tier One Banks Weighs Down NSEASI by -0.4%

July 13, 2020/Cordros Report

EQUITIES

Trading in the domestic bourse resumed on a negative note, as selloffs across MTNN (-1.0%), MOBIL (-10.0%) and some Tier 1 bank names weighed on overall market performance. Thus, the All-Share Index declined by 0.4% to 24,200.60 points. Accordingly, Month-to-Date and Year-to-Date losses increased to -1.1% and -9.8%, respectively.

The total volume of trades increased by 75.7% to 231.23 million units, valued at NGN2.15 billion and exchanged in 3,950 deals. STERLNBANK was the most traded stock by volume at 77.55 million units while MTNN was the most traded stock by value at NGN1.12 billion.

Sectoral performance was weak, following losses in the Oil & Gas (-1.9%), Banking (-1.7%) and Insurance (-0.4%) indices amid gains in the Industrial Goods (+0.3%) and Consumer Goods (+0.1%) indices.

Market sentiment, as measured by market breadth, was negative (0.8x), as 17 tickers declined, relative to 14 gainers. MOBIL (-10.0%) and CHAMS (-8.3%) were the top losers of the day, while NPFMCRFBK (+10.0%) and NEIMETH (+9.4%) recorded the largest gains.

CURRENCY

The naira strengthened at the I&E window by 0.3% to NGN386.00/USD while it was flat at NGN463.00/USD at the parallel market.

MONEY MARKET & FIXED INCOME

The overnight lending rate contracted by 293bps to 11.2%, as system liquidity improved.
 
The NTB secondary market was bullish, as average yield contracted by 17bps to 1.9%. Across the curve, yield contracted at the mid (-17bps) and long (-38bps) segments, due to demand for the 185DTM (-66bps) and 213DTM (-103bps) instruments, respectively; yield was flat at the short end. Elsewhere, average yield was flat at 5.7% at the OMO secondary market.
 
Similarly, trading in the Treasury bond secondary market was bullish, as average yield contracted by 2bps to 7.8%. Across the curve, yield contracted at the mid (-2bps) and long (-4bps) segments, as investors demanded the JUL-2030 (-3bps) and MAR-2050 (-10bps) bonds, respectively; yield was flat at the short end.

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