Daily Market Update for September 21, 2020-Cordros

September 21, 2020-Cordros Report

EQUITIES

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Nigerian shares closed flat at the start of the week, with the benchmark ASI up 1.78 points (0.0%), to close at 25,574.35 points. Accordingly, the Month-to-Date gain and Year-to-Date loss were flat at 1.0% and -4.7% respectively.
 
The total volume of trades increased by 1.4% to 196.12 million units, valued at NGN1.73 billion and exchanged in 3,542 deals. FBNH was the most traded stock by volume at 43.39 million units while MTNN was the most trade stock by value at NGN769.68 million.
 
Sectoral performance was mixed, following gains in the Insurance (+1.4%) and Consumer Goods (+0.1%) indices gained and loss in the Banking (-0.1%) index. The Industrial Goods and Oil & Gas indices were flat.
 
Market sentiment, as measured by the market breadth, was negative (0.6x), as 9 tickers gained relative to 16 losers. CHAMPION (-10.0%) and REDSTAREX (-9.2%) recorded the largest losses of the day while ABCTRANS (+10.0%) and WAPIC (+8.1%) topped the gainers’ list.
 
CURRENCY

The naira was flat at NGN386.00/USD and NGN465/USD at the I&E window and parallel market, respectively.

MONEY MARKET & FIXED INCOME

The overnight lending rate contracted by 100bps to 2.0%, as system liquidity – estimated at NGN533.35 billion— remains healthy.
 
Trading in the NTB secondary market was bearish, as average yield expanded by 10bps to 1.7%. Across the curve, yield contracted at the short (-6bps) end, following buying interests in the 10DTM (-18bps) instrument, while they expanded at the mid (+23bps) and long (+16bps) segments, due to sell-offs of the 157DTM (+30bps) and 220DTM (+28bps) instruments, respectively. On the other hand, average yield contracted by 24bps to 2.0% at the OMO secondary market.
 
Trading in the Treasury bond secondary market was bearish, as average yield expanded by 3bps to 7.5%. Across the curve, yield expanded at the short (+4bps) and long (+5bps) ends, due to sell-offs of the JAN-2022 (+12bps) and MAR-2050 (+13bps) bonds, respectively, while they contracted at the mid (-2bps) segment, following demand for the JUL-2030 (-8bps) bond.

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