Daily Market Update for October 20, 2020-Cordros

October 20, 2020/Cordros Report

EQUITIES

Image Credit; quickenloans.com

Trading in the domestic bourse was slightly positive today, following interests in brewers, NB (+4.7%) and INTBREW (+9.9%). Thus, the All Share Index notched a marginal gain, but closed flat at 28,665.82 points. Accordingly, Month-to-Date and Year-to-Date gains were also flat at 6.8%.
 
The total volume of trades increased by 3.5% to 297.31 million units, valued at NGN2.93 billion and exchanged in 4,736 deals. UBA was the most traded stock by volume at 72.43 million units, while ZENITHBANK was the most traded stock by value at NGN568.21 million.
 
Analysing by sectors, the Insurance (-1.2%), Banking (-1.0%), Oil & Gas (-0.9%) and Industrial Goods (-0.2%) indices declined, while the Consumer Goods (+1.9%) index recorded the sole gain of the day.
 
Market sentiment, as measured by the market breadth, was positive (1.4x), as 23 tickers gained, relative to 17 losers. INTBREW (+9.9%) and UCAP (+8.2%) topped the gainers’ list, while REGALINS (-8.3%) and CORNERST (-4.8%) recorded the largest losses of the day.
 
CURRENCY

The naira appreciated by 0.1% at the I&E window to NGN385.75/USD, while it weakened by 0.2% to NGN463.00/USD in the parallel market.

MONEY MARKET & FIXED INCOME

The overnight lending rate contracted by 100bps to 0.9%, following inflows to the system from OMO maturities (NGN11.50 billion).

At the NTB secondary market, trading was bullish, as average yield contracted by 19bps to 0.6%. Across the curve, average yield was flat at the short and mid segments, but contracted at the long (-69bps) end, due to the demand for the 331DTM (-122bps) instrument. Similarly, average yield contracted by 15bps to 1.0% at the OMO secondary market.

Trading in the Treasury bond secondary market remained bullish, as average yield contracted by 23bps to 4.5%. Across the curve, average yield declined across the short (-9bps), mid (-62bps) and long (-12bps) segments, following buying interests in the JUL-2021 (-43bps), APR-2029 (-124bps) and MAR-2036 (-24bps) bonds, respectively.

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