October 26, 2020/Cordros Report
The domestic equities market opened the week with positive trading, as bargain buying in DANGCEM (+0.7%) and some banking stocks, spurred a 0.3% gain in the All-Share Index to 28,777.96 points. Accordingly, Month-to-Date and Year-to-Date returns increased to 7.3% and 7.4%, respectively.
The total volume of trades increased by 20.4% to 340.80 million units, valued at NGN5.56 billion and exchanged in 4,235 deals. GUARANTY was the most traded stock by volume and value at 56.79 million units and NGN1.74 billion, respectively.
Sectoral performance was mixed, following gains in the Banking (+1.0%), Industrial Goods (+0.4%) and Oil & Gas (+0.1%) indices, and losses in the Insurance (-1.0%) and Consumer Goods (-0.3%) indices.
Market sentiment, as measured by the market breadth, was positive (1.8x), as 27 tickers gained, relative to 15 losers. CUSTODIAN (+10.0%) and NPFMCRFBK (+9.7%) topped the gainers list, while MORISON (-10.0%) and CHIPLC (-8.8%) recorded the largest losses of the day.
The naira closed flat at NGN386.00/USD and NGN463.00/USD at the I&E window and parallel market, respectively.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 350bps to 6.25%, as FGN bond coupon payments worth NGN113.41 billion came into the system.
Trading in the NTB secondary market was bearish, as average yield expanded by 10bps to 0.5%. Across the curve, average yield was flat at the short and mid segments, but expanded at the long (+20bps) end, due to the demand for the 276DTM (+70bps) instrument. At the OMO secondary market, average yield expanded slightly by 1bp to 0.5%.
Activities at the Treasury bond secondary market was bullish, as average yield contracted by 15bps to 4.1%. Across the curve, average yield contracted across the short (-32bps), mid (-7bps), and long (-5bps) segments, following buying interests in the JAN-2022 (-75bps), FEB-2028 (-40bps) and MAR-2036 (-25bps) bonds, respectively.