Foreign Investors’ Interest in AIRTELAFRI, Bargain Hunting in MTNN Drives NGX ASI by +0.8% Higher

August 3, 2021/Cordros Report

EQUITIES

Image Credit: NGX Group

The domestic bourse traded positively, driven by foreign investors’ interest in AIRTELAFRI (+5.7%) and sustained bargain hunting in MTNN (+1.8%). Consequently, the NGX ASI edged up by 0.8% to close at 38,917.99 points. Accordingly, the Month-to-Date gain increased to +1.0%, while the Year-to-Date loss moderated to -3.7%.

The total volume of trades decreased by 5.3% to 231.45 million units, valued at NGN2.13 billion, and exchanged in 4,651 deals. TRANSCORP was the most traded stock by volume at 17.48 million units, while MTNN was the most traded stock by value at NGN376.82 million.

Sectoral performance was broadly negative following declines in the Insurance (-1.0%), Banking (-0.8%), Consumer Goods (-0.3%) and Oil and Gas (-0.2%) indices, and the flat performance of the Industrial Goods index.

As measured by market breadth, market sentiment was negative (0.4x), as 22 tickers lost, relative to 15 gainers. FTNCOCOA (-8.2%) and HONYFLOUR (-7.8%) topped the losers’ list, while WEMABANK (+6.0%) and AIRTELAFRI (+5.7%) recorded the most significant gains of the day.

CURRENCY

The naira was flat at NGN411.50/USD at the I&E window but appreciated by 0.6% to NGN509.00/USD in the parallel market.

MONEY MARKET & FIXED INCOME

The overnight lending rate expanded by 225bps to 8.0% in the absence of any significant inflows in the system.

Trading in the NTB secondary market ended on a bullish note, as the average yield contracted by 15bps to 5.7%. Across the benchmark curve, the average yield contracted at the short (-1bps), mid (-22bps) and long (-21bps) segments due to demand for the 86DTM (-5bps), 177DTM (-35bps) and 205DTM (-45bps) bills, respectively. Elsewhere, the average yield at the OMO segment was flat 8.1%.

The Treasury bond secondary market was bullish, as the average yield contracted by 4bps to 11.9%. Across the benchmark curve, the average yield contracted at the short (-5bps) and mid (-11bps) segments due to demand for the JAN-2022 (-33bps) and APR-2029 (-30bps) bonds respectively; average yield was flat at the long end.

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