August 4, 2021/Cordros Report
The Nigerian equities market traded marginally higher, as interests in PRESCO (+3.7%) and VITAFOAM (+1.0%) triggered a 3bps expansion in the All-Share Index to 38,927.83 points. Accordingly, Month-to-Date and Year-to-Date returns printed +1.0% and -3.3%, respectively.
The total volume of trades declined by 10.9% to 206.29 million units, valued at NGN1.07 billion, and exchanged in 3,435 deals. STERLNBANK was the most traded stock by volume at 51.83 million units, while UBA was the most traded stock by value at NGN129.78 million.
Analysing by sectors, the Oil & Gas (-0.6%) and Insurance (-0.2%) indices posted losses while the Banking (+0.6%) index advanced. Elsewhere, the Industrial Goods and Consumer Goods indices closed flat.
As measured by market breadth, market sentiment was negative (0.8x), as 18 tickers lost, relative to 15 gainers. SOVRENINS (-7.1%) and REGALINS (-6.7%) recorded the most significant losses of the day, while CUTIX (+10.0%) and VERITASKAP (+8.7%) topped the gainers’ list.
The naira was flat at NGN411.50/USD at the I&E window but appreciated by 0.4% to NGN506.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 100bps to 9.0%, in the absence of significant inflows into the system.
The NTB secondary market was mixed, albeit with a bullish tilt, as the average yield pared by 1bp to 5.7%. Across the benchmark curve, average yield contracted at the long (-2bps) end following market participants’ demand for the 344DTM (-17bps) bill, but stayed flat at the short and mid segments. Similarly, the average yield at the OMO segment contracted by 3bps to 8.1%.
Trading in the Treasury bond secondary market was mixed, as the average yield was unchanged at 11.9%. Across the benchmark curve, average yield contracted at the mid (-3bps) segment following investors’ demand for the FEB-2028 (-13bps) bond but expanded at the long (+3bps) end as investors sold off the APR-2037 (+19bps) bond; average yield was flat at the short end.