May 4, 2021/Cordros Report
Activities in the domestic bourse kicked off the week and month in the bear territory, as investors’ sell-offs of WAPCO (-9.5%) and MTNN (-0.5%) spurred the first loss of the week. Thus, the All-Share Index declined by -0.1% to 39,801.78 points. Consequently, the Month-to-date and Year-to-Date losses printed -0.1% and -1.2%, respectively.
The total volume of trades increased by 29.9% to 426.51 million units, valued at NGN4.65 billion, and exchanged in 5,527 deals. FBNH was the most traded stock by volume at 79.60 million units, while ZENITHBANK was the most traded stock by value at NGN1.28 billion.
Sectoral performance was broadly negative as the Insurance (-1.3%), Oil & Gas (-0.7%), Industrial Goods (-0.6%) and Banking (-0.3%), indices all closed in the red; the Consumer Goods (+0.8%) index was the sole gainer.
As measured by market breadth, market sentiment was positive (1.5x), as 24 tickers gained, relative to 16 losers. LASACO (+10.0%) and NEIMETH (+10.0%) were the top gainers of the day, while LINKASSURE (-13.1%) and REGALINS (-9.1%) were the top losers of the day.
The naira depreciated at the I&E window by 0.2% to NGN411.00/USD but was unchanged at NGN485.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 12.25ppts to 15.5%, following inflows from OMO maturities (NGN20.00 billion).
The NTB secondary market was mixed, as the average yield stayed flat at 4.7%. Elsewhere, the OMO segment’s average yield pared by 1bp to 7.9%.
Trading in the Treasury bond secondary market was bearish, as the average yield expanded by 7bps to 11.9%. Across the benchmark curve, the average yield contracted at the short (-1bp) end due to demand for the JAN-2022 (-3bps) bond but expanded at the long (+19bps) end due to sell-offs of the MAR-2035 (+52bps) bond; the mid-segment was flat.