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Markets: Bond yields decline 27bps following buying interests, naira sells N386/$ at I&E window, All-Share Index dips by 0.95%

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Nigeria stock exchange
Nigeria stock exchange

WED, 07 OCT, 2020-theGBJournal-The equities market ended the day lower, as stocks snapped a twelve-day bullish run on profit taking in MTNN (-1.5%), ZENITHBANK (-6.01%) and some other bellwethers. Thus, the All Share Index declined by 1.0% to 28,634.35 points. Accordingly, Month-to-Date gain and Year-to-Date gain both moderated to 6.7% respectively.

The total volume traded increased by 11.1% to 832.88 million units, valued at NGN9.54 billion and exchanged in 9,180 deals. FBNH was the most traded stock by volume at 128.79 million units while ZENITHBANK was the most traded stock by value at NGN2.44 billion.

Sectoral performance was broadly negative, following losses in the Banking (-3.3%), Insurance (-2.0%), Industrial Goods (-0.3%) and Consumer Goods (-0.1%) indices. The Oil & Gas (+0.2%) index was the sole gainer of the day.

Market sentiment, as measured by the market breadth, was negative (0.7x), as 31 tickers declined relative to 21 gainers. UNILEVER (-9.9%) and CORNERST (-9.1%) recorded the largest losses of the day, while BERGER (+9.8%) and LINKASSURE (+9.8%) topped the gainers’ list.

Currency

The naira was flat at the I&E window and parallel market at NGN386.00/USD and NGN458.00/USD, respectively.

Money Market & Fixed Income

The overnight lending rate contracted by 12bps to 1.5%, in the absence of any significant outflow from the system.

Trading in the NTB secondary market was bullish, as average yield pared by 2bps to 1.5%. Across the curve, average yield contracted at the long (-4bps) end, due to demand for the 295DTM (-13bps) instrument; average yield was unchanged at the short and mid segments. Meanwhile, average yield was flat at 1.7% at the OMO secondary market.

At the Treasury bond secondary market, trading was bullish, as average yield declined by 27bps to 6.4%. Across the curve, average yield at the short (-9bps), mid (-26bps) and long (-43bps) segments contracted, following buying interests in the MAR-2024 (-20bps), FEB-2028 (-68bps) and MAR-2050 (-116bps) bonds, respectively.-With Cordros Research

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