ZENITHBANK, GUARANTY Drive Nigerian Stocks Up +0.7%

April 8, 2021/Cordros Report

EQUITIES

Image Credit: NSE

Trading at the domestic equities market turned positive today, as buying interest in tier 1 banks – ZENITHBANK (+3.8%) and GUARANTY (+2.7%), pushed the All-Share Index higher by 0.7% to 38,799.83 points. Accordingly, Month-to-Date and Year-to-Date losses moderated to -0.6% and -3.7%, respectively.

The total volume of trades decreased by 59.2% to 145.33 million units, valued at NGN1.58 billion, and exchanged in 3,525 deals. FBNH was the most traded stock by volume at 21.85 million units, while GUARANTY was the most traded stock by value at NGN589.17 million.

Analysing by sectors, the Banking (+2.2%), Insurance (+0.6%), and Oil & Gas (+0.4%) indices recorded gains, while the Consumer Goods (-0.2%) index declined. The Industrial Goods index closed flat.

As measured by market breadth, market sentiment was mixed (1.0x), as an equal number of tickers (12) recorded gains and declines. CHIPLC (+9.7%) and OANDO (+5.2%) were the top gainers of the day, while ROYALEX (-7.7%) and JAIZBANK (-6.1%) topped the losers’ list.

CURRENCY

The naira appreciated at the I&E window by 0.3% to NGN409.65/USD but was flat at NGN485.00/USD in the parallel market.

MONEY MARKET & FIXED INCOME

The overnight lending rate expanded by 150bps to 15.0%, following outflows for the CBN’s weekly OMO auction.
 
Activities in the NTB secondary market traded lull, as the average yield was flat at 4.0%. Across the curve, average yield was flat at the short (2.4%), mid (3.3%) and long (5.5%) segments. Similarly, average yield was flat at 6.5% in the OMO market.
 
Activity in the Treasury bond secondary market ended on a bearish note, as the average yield expanded by 12bps to 10.1%. Across the benchmark curve, average yield expanded at the mid (+2bps) and long (+2bps) segments following the sell-off of the APR-2029 (+45bps) and MAR-2036 (+46bps) bonds. The short end was flat.

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