MON, AUG 31 2020-theG&BJournal-The domestic bourse started the week on a positive note as buying interests in DANGCEM (+0.5%), WAPCO (+3.5%) and 11PLC (+10.0%) spurred a marginal gain in the market. Thus, the All-Share Index notched up by 0.1% to 25,327.13 points. Accordingly, Month-to-Date gain increased to +2.6% while Year-to-Date loss moderated to -5.6%.
MOBIL, DANGCEM, WAPCO, VITAFOAM and BUACEMENT led the advances, closing N175, N134.2, N11.55. N5.47 and N40 respectively. In all, 11 stocks posted gains while 17 stocks declined.
The total volume of trades increased by 120.4% to 302.01 million units, valued at NGN2.63 billion and exchanged in 3,854 deals. UACN was the most traded stock by volume and value at 74.42 million units and NGN425.23 million, respectively.
Analysing by sectors, the Oil & Gas (+2.0%) and Industrial Goods (+0.6%) indices recorded gains, while the Banking (-0.7%), Insurance (-0.6%) and Consumer Goods (-0.01%) indices declined.
Market sentiment, as measured by the market breadth, was negative (0.6x), as 17 tickers declined relative to 11 gainers. CILEASING (-10.0%) and UAC-PROP (-7.6%) recorded the largest losses of the day, while MOBIL (+10.0%) and FTNCOCOA (+8.3%) topped the gainers’ list.
The naira appreciated at the I&E window and parallel market by 0.02% and 2.6% to NGN385.67/USD and NGN465.00/USD, respectively.
Money Market & Fixed Income
The overnight lending rate contracted by 530bps to 9.6%, in the absence of any significant outflows from the system.
Trading in the NTB secondary market was bearish, as average yield expanded by 7bps to 1.7%. Across the curve, yield contracted at the mid (-19bps) segment, due to demand for the 150DTM (-65bps) instrument, while they expanded at the long (+41bps) end, following sell-off of the 241DTM (+97bps) instrument; yield was unchanged at the short end. Conversely, average yield pared by 2bps to 3.1% at the OMO secondary market.
Elsewhere, the Treasury bond secondary market traded with bearish sentiments, as average yield expanded by 7bps to 8.0%. Across the curve, yield contracted at the short (-14bps) end, due to buying interests in the JAN-2022 (-66bps) bond, while they expanded at the mid (+14bps) and long (+21bps) segments, following sell-offs of the MAR-2027 (+32bps) and MAR-2036 (+86bps) bonds, respectively.-With Cordros Research