NGX Sustains Bullish Momentum Gains +0.7% on Bargin Hunting in Dangote Cement

June 9, 2021/Cordros Report

EQUITIES

Image Credit: oilprice.com

The domestic bourse sustained yesterday’s bullish momentum, following bargain hunting in DANGCEM (+2.2%). Thus, the benchmark index edged higher by 0.7% to 39,170.95 points. Consequently, Month-to-Date gain increased to 1.9%, while Year-to-Date loss moderated to -2.7%.

The total volume of trades decreased by 16.9% to 181.53 million units, valued at NGN3.96 billion, and exchanged in 3,217 deals. ZENITHBANK was the most traded stock by volume at 20.76 million units, while NESTLE was the most traded stock by value at NGN1.41 billion.

Sectoral performance was broadly positive, as the Industrial Goods (+1.3%), Banking (+1.3%), Insurance (+0.4%), and Consumer Goods (+0.3%) indices recorded gains. In contrast, the Oil & Gas index was flat.

As measured by market breadth, market sentiment was positive (4.2x), as 25 tickers gained relative to 6 losers. CUTIX (+10.0%) and OKOMUOIL (+9.8%) topped the gainers’ list, while SOVRENINS (-3.6%) and JAIZBANK (-3.4%) recorded the most significant losses of the day.

CURRENCY

The naira appreciated at the I&E window by 0.1% to NGN410.95/USD but remained flat at NGN502.00/USD in the parallel market.

MONEY MARKET & FIXED INCOME

The overnight lending rate expanded by 50bps to 15.2% following outflows for NTB auction (NGN91.27 billion).

Trading in the NTB secondary market was muted, as the average yield stayed flat at 6.3%. Elsewhere, the OMO segment’s average yield contracted by 12bps to 9.7%.

The Treasury bond secondary market traded flat, albeit with a bearish tilt. Thus, the average yield was unchanged at 12.1%. Across the benchmark curve, the average yield was flat at the short and long ends but expanded slightly at the mid (+1bp) segment due to the sell-off of the MAR-2027 (+3bps) bond.

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