November 19, 2020/Cordros Report
Trading in the domestic bourse was bearish today, following profit taking on banking stocks – ZENITHBANK (-2.4%), STANBIC (-4.1%) and UBA (-2.9%). As a result, the benchmark index declined by 0.5% to 34,643.65 points. Accordingly, the Month-to-Date and Year-to-Date gains moderated to 13.5% and 29.1%, respectively.
The total volume traded decreased by 44.8% to 364.92 million units, valued at NGN3.50 billion, and exchanged in 6,340 deals. TRANSCORP was the most traded stock by volume at 50.73 million units, while ZENITHBANK was the most traded stock by value at NGN535.68 million.
Sectoral performance was mixed, following gains in the Insurance (+1.5%), Consumer Goods (+0.4%) and Industrial Goods (+0.3%) indices and a loss in the Banking (-2.7%) index. The Oil and Gas index closed flat.
Market sentiment, as measured by market breadth, was negative (0.7x), as 19 tickers gained, relative to 28 losers. PRESCO (-10.0%) and FCMB (-9.9%) recorded the largest losses of the day, while BOCGAS (+9.9%) and ETERNA (+9.9%) topped the gainers’ list.
The naira appreciated by 0.1% to NGN385.50/USD at the I&E window but closed flat at NGN478.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 50bps to 1.0% in the absence of any significant outflows from the system.
Trading in the NTB secondary market remain muted as average yield closed flat at 0.1%. Average yield was flat across the short, mid and long segments. Elsewhere, average yield expanded by 3bps to 0.1% at the OMO secondary market.
Activities at the Treasury bond secondary market were bearish, as average yield expanded by 4bps to 4.0%. Across the curve, average yield expanded at the short (+12bps) and mid (+3bps) segments, following sell-offs of the JAN-2022 (+71bps) and MAR-2027 (+13bps) bonds, respectively; but contracted at the long (-3bps) end, due to the demand for the APR-2049 (-12bps) bond.