Nigerian Bourse Eke Out Marginal Gain of +0.02%, Driven by MTNN, Nestle

April 7, 2021/Cordros Report


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The local bourse eked out a marginal gain (+2bps to close at 38,774.03 points) in today’s session, as late interest in MTNN (+1.1%) and NESTLE (+3.3%) stocks cancelled out the effects of the sell-offs on tier 1 banks, ZENITHBANK (-4.1%) and GUARANTY (-3.3%) stocks. Consequently, the Month-to-Date and Year-to-Date losses moderated to -0.7% and -3.7%, respectively.

The total volume of trades increased by 58.7% to 356.46 million units, valued at NGN4.19 billion, and exchanged in 6,130 deals. ZENITHBANK was the most traded stock by volume and value at 55.03 million units and NGN1.16 trillion, respectively.

Sectoral performance was bearish, as the Banking (-3.1%), Insurance (-1.7%), Oil & Gas (-0.3%), and Industrial Goods (-0.1%) indices recorded losses. The Consumer Goods (+1.9%) index was the lone gainer.

As measured by market breadth, market sentiment remained negative (0.4x), as 27 tickers declined relative to 10 gainers. STERLNBANK (-9.5%) and PHARMDEKO (-9.5%) topped the losers’ list, while JAIZBANK (+10.0%) and ROYALEX (+8.3%) recorded the most significant gains of the day.

The naira depreciated at the I&E window by 0.1% to NGN411.00/USD but stayed flat at NGN485.00/USD in the parallel market.

The overnight lending rate contracted by 25bps to 13.5%, in the absence of any significant funding pressure on the system.

The NTB secondary market was mixed as the average yield closed flat at 4.0%. Elsewhere, the average yield expanded at the OMO segment by 12bps to 6.5%.

Trading in the Treasury bond secondary market was bearish, as the average yield expanded by 13bps to 10.0%. Across the benchmark curve, the average yield was flat at the short end but expanded at the mid (+2bps) and long (+32bp) segments, following sell-offs of the MAR-2027 (+7bps) and JUL-2045 (+101bps) bonds, respectively.

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