November 26, 2020/Cordros Report
The domestic bourse recorded its third consecutive gain this week, as the NSE ASI notched a 0.1% increase to 34,803 points. The performance was supported by gains in GUARANTY (+2.6%), INTBREW (+9.6%) and MOBIL (+9.9%) stocks. Consequently, Month-to-Date and Year-to-Date return increased to +14.0% and +29.7%, respectively.
The total volume of trades decreased by 40.8% to 257.56 million units, valued at NGN3.53 billion, and exchanged in 5,407 deals. ZENITHBANK was the most traded stock by volume and value at 40.57 million units and NGN999.27 million, respectively.
Sectoral performance was broadly positive, following gains in the Oil & Gas (+2.8%), Insurance (+1.0%) and Consumer Goods (+0.6%) indices. The Banking and Industrial Goods indices closed flat.
Market sentiment, as measured by market breadth, was mixed (1.0x), as 20 tickers gained, relative to 21 losers. NCR (+10.0%) and MOBIL (+9.9%) topped the gainers’ list, while ROYALEX (-7.7%) and UNIONDAC (-7.4%) recorded the largest losses of the day.
The naira was flat at NGN393.25/USD at the I&E window but depreciated further by 1.4% to NGN494.00/USD at the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 25bps to 1.0%, following outflows from the system for CBN’s weekly OMO auction.
Trading in the NTB secondary market was mixed, following reduced activity in the space. Thus, average yield was unchanged at 0.1%. Similarly, average yield at the OMO secondary market was flat at 0.2%.
The Treasury bonds secondary market was mixed, albeit with a bearish tilt, as average yield was flat at 3.9%. Across the curve, average yield expanded at the short (+2bps) and mid (+11bps) segments, following profit-taking on the JAN-2026 (+48bps) and MAR-2027 (+29bps) bonds, respectively. Conversely, it declined at the long (-7bps) end, due to demand for the MAR-2050 (-25bps) bond.