The Naira was flat at NGN412.06/USD at the I&E window but depreciated by 0.9% to NGN562.00/USD in the parallel market.
September 15, 2021/Cordros Report
The Nigerian equities market snapped its two-day mixed trading streak as investors’ interest in MTNN (+1.5%) underpinned a +0.1% increase in the All-Share index to 39,968.34 points. Accordingly, Month-to-Date and Year-to-Date losses moderated to -0.6% and -3.2%, respectively.
The total volume of trades decreased by 36.8% to 141.41 million units, valued at NGN2.97 billion, and exchanged in 3,079 deals. UNIVINSURE was the most traded stock by volume at 17.99 million units, while MTNN was the most traded stock by value at NGN1.01 billion.
Sectoral performance was broadly negative as three of our coverage indices – Oil and Gas (-2.0%), Insurance (-1.2%), and Banking (-0.4%) indices recorded declines. Elsewhere, the Consumer Goods and Industrial Goods indices closed flat.
As measured by market breadth, market sentiment was negative (0.9x), as 17 tickers lost, relative to 13 gainers. TRANSCOHOT (-10.0%) and CHIPLC (-9.4%) topped the losers’ list, while NNFM (+9.6%) and OANDO (+6.2%) recorded the most significant gains of the day.
The naira was flat at NGN412.06/USD at the I&E window but depreciated by 0.9% to NGN562.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 95bps to 13.6% in the absence of any significant funding pressures on the system.
The NTB secondary market was bearish, as the average yield expanded by 65bps to 5.5%. Across the curve, the average yield expanded at the short (+97bps), mid (+60bps) and long (+42bps) segments as market participants sold off the 15DTM (+106bps), 120DTM (+72bps) and 344DTM (+66bps) bills, respectively. Similarly, the average yield at the OMO segment expanded by 7bps to 6.1%.
Trading in the Treasury bond secondary market was also bearish, as the average yield expanded by 13bps to 11.4%. Across the benchmark curve, the average yield expanded at the short (+12bps), and long (+20bps) ends following sell-offs of the JAN-2022 (+67bps) and JUL-2045 (+92bps) bonds; the mid-segment stayed unchanged.