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Equities powers higher after investors took position on STANBIC, bond yield stays flat at at 8.0% and naira trades flat at N440/US$

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STOCK EXCHANGE

WED, SEPT 02 2020-theG&BJournal-Sentiments remained positive in the domestic bourse, as investors took position in STANBIC (+2.7%), following the company’s positive H1-20 performance and interim dividend announcement. Thus, the All-Share Index advanced by 0.2% to 25,460.00 points. Accordingly, Month-to-Date gain increased to 0.5% while Year-to-Date loss moderated to -5.2%.

NB, FLOURMILL, GUINESS and BUACEMENT were the big winners closing at 2.56% (N40), 1.06% (N19), 1.45% (N14) and 0.25% (N40) respectively.

The total volume of trades declined by 83.1% to 181.32 million units, valued at NGN1.12 billion and exchanged in 3,408 deals. TRANSCORP was the most traded stock by volume at 26.79 million units while ZENITHBANK was the most traded stock by value at NG220.67 million.

Sectoral performance was mixed, following gains in the Consumer Goods (+0.6%) and Banking (+0.4%) indices, and losses in the Insurance (-1.1%) and Oil & Gas (-0.2%) indices. The Industrial Goods index was flat.

Market sentiment, as measured by the market breadth, was positive (1.8x), as 18 tickers gained relative to 10 losers. CORNERST (+8.3%) and UNIONDAC (+8.0%) topped the gainers’ list while ACADEMY (-10.0%) and MANSARD (-9.2%) recorded the largest losses of the day.

Currency

The naira was flat at NGN386.00/USD and NGN440.00/USD, at the I&E window and parallel market, respectively.

Money Market & Fixed Income

The overnight lending rate contracted by 105bps to 5.3%, in the absence of any significant outflows from the system.

Trading in the NTB secondary market was mixed, as average yield was flat at 2.1%. On the other hand, average yield contracted by 7bps to 2.9% at the OMO secondary market.

Trading in the Treasury bond secondary market was also mixed, as average yield was flat at 8.0%.-With Cordros Research

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