NGX Index Trades Flat at 37,952.65 Points to Open Week

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July 19, 2021/Cordros Report

EQUITIES

The Nigerian equities market started the week’s trading with mixed sentiments, as interests in WEMABANK (+8.8%) and PRESCO (+2.9%) offset losses in UBN (-2.7%) and ETI (-3.8%). Thus, the All-Share Index traded flat at 37,952.65 points, with Month-to-Date and Year-to-Date returns flat at +0.1% and -5.8%, respectively.

The total volume of trades increased by 73.5% to 462.81 million units, valued at NGN1.2 billion, and exchanged in 3,610 deals. JAIZBANK was the most traded stock by volume at 217.12 million units, while NB was the most traded stock by value at NGN138.74 million.

Analysing by sectors, the Insurance (+1.2%), Oil & Gas (+0.3%) and Consumer Goods (+0.1%) indices posted gains while the Banking (-0.4%) index declined.  The Industrial Goods index closed flat.

As measured by market breadth, market sentiment was positive (2.4x), as 22 tickers gained, relative to 9 losers. ETERNA (+10.0%) and UPL (+9.9%) topped the gainers’ list, while FTNCOCOA (-7.3%) and SOVRENINS (-6.1%) recorded the most significant losses of the day.

CURRENCY

The naira depreciated by 0.3% to NGN411.67/USD at the I&E window but appreciated by 0.2% to NGN505.00/USD in the parallel market.

MONEY MARKET & FIXED INCOME

The overnight lending rate expanded by 675bps to 11.5%, in the absence of any significant inflow into the system.

The NTB secondary market traded flat, as the average yield was unchanged at 6.7%. Elsewhere, the average yield at the OMO segment contracted by 58bps to 8.7%.

Trading in the Treasury bond secondary market was bullish, as the average yield pared by 2bps to 12.1%. Across the benchmark curve, average yield contracted at the mid (-2bps) and long (-4bps) segments due to demand for the JUL-2030 (-4bps) and JUL-2034 (-16bps) bonds, respectively; the short end was flat.

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