Nigerian Bourse Sustain Bullish Run, Driven by Bellwethers to Fourth Straight Gain

January 14, 2021/Cordros Report

EQUITIES

Nigerian Stock Exchange Trading Floor. Image credit: NSE

The local bourse sustained its positive run, as buying interests in bellwethers – DANGCEM (+3.0%), MTNN (+1.8%) and SEPLAT (+8.8%) – spurred a fourth consecutive gain in the market. Precisely, the NSE ASI notched a 1.5% increase to 40,963.14 points, with Month-to-Date and Year-to-Date returns both increasing to +1.7%.

The total volume of trades increased by 72.9% to 809.36 million units, valued at NGN8.91 billion, and exchanged in 6,706 deals. TRANSCORP was the most traded stock by volume at 136.58 million units, while GUARANTY was the most traded stock by value at NGN2.25 billion.

Sectoral performance was positive, following gains in the Insurance (+5.3%), Oil & Gas (+5.2%), Banking (+2.4%), Industrial Goods (+1.7%) and Consumer Goods (+0.7%) indices.

Market sentiment, as measured by market breadth, was positive (6.9x), as 48 tickers gained, relative to 7 losers. CHAMPION (+9.8%) and NASCON (+9.7%) recorded the largest gains of the day, while COURTVILLE (-8.3%) and NEIMETH (-6.4%) topped the losers’ list.
 
CURRENCY

The naira depreciated by 0.3% and 0.2% to NGN394.67/USD and NGN475.00/USD at the I&E window and parallel market, respectively.

MONEY MARKET & FIXED INCOME

The overnight lending declined by 75bps to 1.3%, following inflows into the system from NTB maturities (NGN232.36 billion).

The NTB secondary ended the day on a mixed note, as average yield was flat at 0.5%. Across the curve, average yield pared at the short (-1bp) end as market participants bought the 56DTM (-6bps) instrument, but traded flat at the mid and long segments. Similarly, average yield expanded slightly by 1bp to 0.8% at the OMO secondary market.

Trading in the Treasury bonds secondary market was bullish, as the average yield pared by 2bps to 6.4%. Across the curve, the average yield contracted at the short (-7bps) end, following buying interests in the JAN-2022 (-30bps) bond, and expanded slightly at the long (+1bp) end, due to profit-taking on the JUL-2034 (+5bps) bond; the mid segment was flat.

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