Bulls Sustain Hold on Nigerian Bourse, NGX ASI Advance +0.1%

June 10, 2021/Cordros Report

EQUITIES

Credit: theguardian.com

The bullish run in the local bourse continued today, as the All-Share Index advanced by 0.1% to 39,210.10 points. Trading during the day was mixed, however, investors’ late demand for VITAFOAM (+3.5%) and MAYBAKER (+5.0%) drove the performance. Accordingly, MTD gain increased to +2.0% while YTD loss moderated to -2.6%.

The total volume of trades decreased by 12.8% to 158.37 million units, valued at NGN2.24 billion, and exchanged in 3,330 deals. ZENITHBANK was the most traded stock by volume and value at 27.32 million units and NGN629.22 million, respectively.

On sectors, the Banking (+0.5%) and Consumer Goods (+0.4%) indices recorded gains while the Insurance (-1.0%) index declined. Elsewhere, the Industrial Goods and Oil & Gas indices closed flat.

As measured by market breadth, market sentiment was positive (1.3x), as 19 tickers gained relative to 15 losers. LINKASSURE (+9.1%) and PZ (+7.1%) recorded the most significant gains of the day, while CWG (-9.6%) and CHIPLC (-9.0%) topped the losers’ list.

CURRENCY

The naira depreciated at the I&E window by 0.2% to NGN411.83/USD but stayed flat at NGN502.00/USD in the parallel market.

MONEY MARKET & FIXED INCOME

The overnight lending rate expanded by 208bps to 17.3%, as funding pressures for NTB net issuances and CBN’s weekly OMO auction outweighed inflows into the system.

The NTB secondary market closed on a bearish note, as the average yield expanded by 10bps to 6.4%. Across the benchmark curve, average yield expanded at the mid (+6bps) and long (+22bps) segments following sell-offs of the 168DTM (+10bps) and 322DTM (+29bps) bills but contracted at the short (-2bps) end following investors demand for the 21DTM (-6bps) bill. Elsewhere, the average yield at the OMO segment closed flat at 9.6%.

Trading in the Treasury bond secondary market closed on a bearish note, as the average yield expanded by 2bps to 12.2%. Across the benchmark curve, average yield expanded at the short (+2bps) and mid (+11bps) segments following sell-off of the JAN-2022 (+15bps) and APR-2029 (+24bps) bonds but contracted at the long (-4bps) end following demand for the APR-2049 (-18bps) bond.

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