Daily Market Update for August 10, 2020-Cordros

August 10, 2020/Cordros Report


Trading in the local bourse opened the week with weak sentiments, as investors sold down BUACEMENT (-1.39%) and some banking stocks. Thus, the benchmark index declined by 0.1% to 25,027.61 points – the first decline in seven consecutive trading sessions. Consequently, the Month-to-Date gain moderated to +1.4% while the Year-to-Date loss increased to -6.8%.
The total trade volume increased by 4.9% to 175.33 million units, valued at NGN1.43 billion and exchanged in 4,294 deals. FBNH was the most traded stock by volume at 22.94 million units while GUARANTY was the most traded stock by value at NGN344.28 million.
On sectors, the Insurance (+1.0%), Consumer Goods (+0.3%) and Oil & Gas (+0.1%) indices recorded gains, while the Industrial Goods (-0.4%) and Banking (-0.04%) indices declined.
Market sentiment, as measured by the market breadth, was positive (1.5x), as 17 tickers gained relative to 11 losers. CORNERST (+9.1%) and UNILEVER (+7.1%) recorded the largest gains of the day, while CHAMPION (-9.5%) and HONYFLOUR (-8.6%) were the top losers.


The naira strengthened by 0.1% to NGN385.50/USD at the I&E window while it was flat at NGN475.00/USD at the parallel market.


The overnight lending rate contracted by 104bps to 6.1%, in the absence of any significant outflows from the system.
Trading in the NTB secondary market was mixed, as average yield was flat at 1.7%. On the other hand, average yield pared by 2bps to 4.0% at the OMO secondary market.
Elsewhere, trading in the Treasury bond secondary was bullish, as average yield contracted by 12bps to 7.6%. Across the curve, average yield contracted at the short (-6bps) and long (-33bps) ends, due to demand for the JAN-2026 (-18bps) and JUL-2034 (-60bps) bonds, respectively, while they expanded at the mid (+14bps) segment following sell-off of the FEB-2028 (+63bps) bond.

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