Home Companies&Markets Markets: ASI closes 26,831.76 points, naira weakens at I&E window, bond average...

Markets: ASI closes 26,831.76 points, naira weakens at I&E window, bond average yield expands 7bps to 6.7%

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WED, 30 SEPT, 2020-theGBJournal-The local bourse remained positive after the day’s session, as interest in DANGCEM (+2.8%), MTNN (+1.2%) and GUARANTY (+3.7%) stocks notched a 0.8% increase in the All-Share Index to 26,831.76 points. Accordingly, the Month-to-Date gain increased to 5.9% while the Year-to-Date loss was marginal at 0.0%.

The total volume of trades declined by 21.9% to 322.77 million units, valued at NGN4.04 billion and exchanged in 4,046 deals. STERLNBANK was the most traded stock by volume at 83.69 million units while DANGCEM was the most traded stock by value at NGN1.20 billion.

Analyzing by sectors, the Banking (+1.9%), Industrial Goods (+1.4%), Oil & Gas (+0.9%) and Insurance (+0.3%) indices gained, while the Consumer Goods (-1.7%) index was the sole loser.

Market sentiment, as measured by the market breadth, was positive (2.5x), as 20 tickers gained relative to 8 losers. TOTAL (+10.0%) and ETERNA (+9.6%) topped the gainers’ list, while UPL (-6.8%) and NB (-6.8%) recorded the largest losses of the day.

 Currency

The naira weakened by 0.1% to NGN386.00/USD at the I&E window, while it appreciated by 1.1% to NGN465.00/USD in the parallel market.

Money Market & Fixed Income

The overnight lending rate contracted by 138bps to 1.8%, in the absence of any significant outflow from the system.

Trading in the NTB secondary market was bullish, as the average yield pared by 2bps to 1.9%. Across the curve, average yield contracted at the short (-2bps) and mid (-7bps) segments, following buying interest in the 92DTM (-5bps) and 148DTM (-10bps) instruments, respectively; average yield was unchanged at the long end. Similarly, average yield contracted by 2bps to 1.9% at the OMO secondary market.

At the Treasury bond secondary market, trading was bearish, as average yield expanded by 7bps to 6.7%. Across the curve, average yield expanded at the short (+6bps), mid (+3bps) and long (+12bps) segments, due to sell-offs of the JAN-2022 (+59bps), JUL-2030 (+12bps) and JUL-2034 (+52bps) bonds, respectively.-With Cordros Research.

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