Daily Market Update for September 15, 2020-Cordros

September 15, 2020/Cordros Report

EQUITIES

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The local bourse ended the day lower, as investors sold off on FBNH (-2.0%), SEPLAT (-1.3%) and DANGSUGAR (-1.2%) stocks. Consequently, the benchmark index marginally by 0.03% to 25,597.96 points. Accordingly, Month-to-Date gain moderated to 1.1%, while Year-to-Date loss increased to -4.6%.
 
The total volume traded declined by 4.6% to 245.14 million units, valued at NGN3.01 billion and exchanged in 3,597 deals. FBNH was the most traded stock by volume at 51.44 million units while GUARANTY was the most trade stock by value at NGN1.16 billion.
 
Sectoral performance was broadly negative, due to losses in the Oil & Gas (-1.2%), Banking (-0.2%) and Consumer Goods (-0.1%) indices. The Insurance (+0.4%) and Industrial Goods (+0.2%) indices recorded gains.
 
Market sentiment, as measured by the market breadth, was negative (0.9x), as 13 tickers gained relative to 15 losers. NPFMCRFBK (-9.4%) and UNIONDAC (-7.4%) recorded the largest losses of the day while IKEJAHOTEL (+9.5%) and UAC-PROP (+9.2%) topped the gainers’ list.
 
CURRENCY

The naira was flat at NGN386.00/USD and NGN460.00 at the I&E window and parallel market, respectively.

MONEY MARKET & FIXED INCOME

The overnight lending rate contracted by 55bps to 5.2%, in the absence of any significant funding pressure on the system.
 
Trading in the NTB secondary market was mixed, due to the absence of significant volumes as market participants anticipate tomorrow’s PMA, where the CBN will be offering NGN158.75 billion worth of instruments. Conversely, at the OMO secondary market, average yield pared by 3bps to 2.4%.
 
Elsewhere, trading in the Treasury bond secondary market remained bullish, as average yield contracted by 3bps to 7.4%. Across the curve, yield contracted at the short (-1bp), mid (-6bps) and long (-3bps) segments, following buying interests in the JAN-2022 (-2bps), JAN-2026 (-15bps) and APR-2037 (-14bps) bonds, respectively.

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