October 13, 2021/Cordros Report
The domestic bourse sustained yesterday’s gains, as demand for – FBNH (+2.8%), WAPCO (+2.5%) and OKOMUOIL (+8.2%) drove the All-Share Index higher. Consequently, the NGX ASI advanced by 0.4% to close at 41,051.19 points. Thus, the Month-to-Date and Year-to-Date returns increased to +2.1% and +1.9%, respectively.
The total volume of trades declined by 20.9% to 446.17 million units, valued at NGN4.47 billion, and exchanged in 4,704 deals. FBNH was the most traded stock by volume and value at 148.35 million units and NGN1.67 billion, respectively.
On sectors, gains in the Banking (+1.4%), Oil & Gas (+0.5%), Insurance (+0.4%), Consumer Goods (+0.4%), and Industrial Goods (+0.2%) indices reflected the overall market performance.
As measured by market breadth, market sentiment was positive (2.2x), as 28 tickers gained relative to 13 losers. TRANSCOHOT (+9.9%) and CHAMPION (+9.9%) topped the gainers’ list, while FTNCOCOA (-8.0%) and ABCTRANS (-5.9%) recorded the most significant losses of the day.
The naira depreciated by 0.2% to NGN415.10/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 250bps to 8.0%, in the absence of any significant inflows in the system.
The NTB secondary market was quiet, as market participants’ focus shifted to today’s NTB primary auction. Thus, the average yield stayed flat at 5.3%. At the auction, the CBN offered NGN121.66 billion for sale with a total subscription of NGN493.03 billion. Accordingly, the CBN allotted NGN4.22 billion for the 91-day, NGN6.95 billion for the 182-day and NGN176.06 billion for the 364-day bills – at respective stop rates of 2.50% (previously 2.50%), 3.50% (previously 3.50%), and 7.25% (previously 7.50%). Elsewhere, the average yield at the OMO segment expanded by 2bps to 7.7%. Elsewhere, the average yield at the OMO segment contracted slightly by 2bps to 6.5%.
Trading in the Treasury bond secondary market was mixed, with a bearish bias, as the average yield expanded slightly by 1bp to 11.3%. Across the benchmark curve, average yield expanded at the long (+2bps) end as investors sold off the MAR-2035 (+12bps) and MAR-2036 (+12bps) bonds; the short and mid segments closed flat.