Daily Market Update for September 23, 2020-Cordros

September 23, 2020/Cordros Report

EQUITIES

Image Credit; quickenloans.com

The domestic equities market sustained its positive performance from the last four sessions, as the ASI notched higher by 0.5% to 25,783.02 points – the biggest move since rising by 1.0% on August 12, 2020. The performance was supported by bargain buying in MTNN (+0.7%), NB (+3.6%) and ZENITHBANK (+1.8%) stocks. Thus, the Month-to-Date gain increased to 1.8% while the Year-to-Date loss moderated to -4.0%.
 
The total volume of trades increased by 58.1% to 414.16 million units, valued at NGN6.28 billion and exchanged in 3,793 deals. STERLNBANK was the most traded stock by volume at 85.20 million units, while MTNN was the most traded stock by value at NGN3.13 billion.
 
Sectoral performance was positive, following gains in the major indices. The Oil & Gas (+2.0%) index led the gains, followed by the Consumer Goods (+1.4%), Insurance (+1.1%), Banking (+0.7%) and Industrial Goods (+0.1%) indices.
 
Market sentiment, as measured by the market breadth, was positive (1.5x), as 21 tickers gained relative to 14 losers. INTBREW (+9.1%) and PRESTIGE (+9.1%) topped the gainers’ list while ABCTRANS (-9.1%) and ROYALEX (-6.9%) recorded the largest losses of the day.
 
CURRENCY

The naira weakened at the I&E window and parallel market by 0.1% and 0.4% to NGN386.00/USD and NGN467.00/USD, respectively.

MONEY MARKET & FIXED INCOME

The overnight lending rate was unchanged at 1.8%, in the absence of any significant movement in the system.
 
Trading in the NTB secondary market remained mixed, as the average yield was flat at 1.7%. On the other hand, average yield contracted by 11bps to 1.8% at the OMO secondary market.
 
Trading in the Treasury bond secondary market was bullish, average yield contracted by 9bps to 7.4%. Across the curve, yield contracted at the short (-9bps) and long (-13bps) ends, following demand for the JAN-2026 (-52bps) and MAR-2050 (-35bps) bonds, respectively; average yield was flat at the mid-segment.

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