Home Companies&Markets Equities gain 0.1% to close 25,605.59 points, naira crashes 1.1% to N460/$...

Equities gain 0.1% to close 25,605.59 points, naira crashes 1.1% to N460/$ and bond average yield dips 9bps to 7.4%

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STOCK EXCHANGE

MON SEPT 14, 2020-theGBJournal-Stocks started the week on a positive note after domestic equities market finished a volatile week lower.

During Monday’s trading, buying interest in DANGCEM (+0.8%) spurred a marginal gain in the market, pushing  the All-Share Index up by 0.1% to 25,605.59 points.

Accordingly, the Month-to-Date gain increased to 1.1% while Year-to-Date loss moderated to -4.6%.

The total volume of trades increased by 20.8% to 257.03 million units, valued at NGN3.32 billion and exchanged in 3,567 deals. CUSTODIAN was the most traded stock by volume at 49.27 million units while GUARANTY was the most trade stock by value at NGN739.21 million.

Analyzing by sectors, the Industrial Goods (+0.5%) and Banking (+0.2%) indices gained, while the Oil & Gas (-0.1%), Insurance (-0.1%) and Consumer Goods (-0.5%) indices recorded losses.

Market sentiment, as measured by the market breadth, was positive (1.1x), as 17 tickers gained relative to 16 losers. NEIMETH (+9.6%) and ROYALEX (+7.1%) topped the gainers’ list while INTBREW (-8.6%) and UAC-PROP (-8.4%) recorded the largest losses of the day.

Currency

The naira was flat at the I&E window at NGN386.00/USD, while it weakened by 1.1% to NGN460.00 in the parallel market, despite CBN’s FX sale to BDCs.

Money Market and Fixed Income

The overnight lending rate crashed by 10.75ppts to 5.8%, as inflows from FGN bond coupon payments (NGN50.84 billion) improved system liquidity.

The NTB secondary market opened the week with mixed sentiments, as yields across all instruments in the space were flat. Conversely, at the OMO secondary market, average yield pared by 3bps to 2.4%.

Elsewhere, trading in the Treasury bond secondary market was bullish, as average yield contracted by 9bps to 7.4%. Across the curve, yield contracted at the short (-8bps), mid (-16bps) and long (-6bps) segments, following buying interests in the APR-2023 (-29bps), APR-2029 (-42bps) and MAR-2050 (-16bps) bonds, respectively.

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