Home Companies&Markets MARKET WRAP: Sentiment is positive across market breathe but equities continued its...

MARKET WRAP: Sentiment is positive across market breathe but equities continued its descent

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…Naira appreciated by 0.03% against the $

…Lending rate pared marginally by 29bps to 3.71%

WED, DEC 04 2019-theG&BJournal-The domestic equities market continued its descent, as the benchmark index pared by 0.02% to 26,938.58 points, following sell-offs of Banking stocks. Consequently, the Month-to-Date and the Year-to-Date losses worsened to -0.24% and -14.29% respectively.

Similarly, the total volume of trades dipped by 40.27% to 112.89 million units, valued at NGN1.08 billion and exchanged in 3,041 deals. ZENITHBANK was the most traded stock by volume and value at 15.86 million units and NGN296.86 million respectively.

Mixed performances were recorded across sectors, as Banking (-0.45%) and Oil & Gas (-0.24%) indices declined, while the Insurance (+0.77%) and Industrial Goods (+0.34%) and Consumer Goods (+0.15%) indices advanced.

Market sentiment, as measured by market breadth, was positive (1.2x), as 16 tickers recorded gains relative to 13 losers. JAPAULOIL (+10.00%) and MAYBAKER (+9.73%) recorded the largest gains, while STERLNBANK (-6.34%) and CHAMS (-5.71%) topped the laggards’ list.

Currency

In today’s trading, the naira appreciated by 0.03% against the US dollar to NGN362.61/USD at the I&E FX window but was flat at NGN360.00/USD at the parallel market.

Money market & fixed income

The overnight lending rate pared marginally by 29bps to 3.71%, on account of significant system liquidity which is estimated at NGN340.14 million.

Activities in the Treasury bills market were bullish, as the average yield dipped by 17bps to 7.29%. Yields contracted at the short (-25bps), mid (-1bp) and long (-23bps) segments of curve, following buying interest in the 29DTM (-124bps), 148DTM (-4bps) and 225DTM (-99bps) instruments, respectively. Yields on OMO bills were flat.

Similarly, trading in the Treasury bonds market was bullish, as the average yield pared by 12bps to 11.74%. Buying interests in the FEB-2020 (-43bps), FEB-2028 (-16bps) and JUL-2030 (-13bps) bonds, led to respective yields contraction across the short (-18bps), mid (-13bps) and long (-6bps) segments of the curve.-Courtesy of Cordros Capital

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