Home Companies&Markets MARKETS BRIEF: Equities retreat 0.6% after Wednesday’s gain, Treasury Bonds yield expands...

MARKETS BRIEF: Equities retreat 0.6% after Wednesday’s gain, Treasury Bonds yield expands by 14bps to 9.2%, naira gains 0.5% to N409/$

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STOCK EXCHANGE

THUR 11 MARCH, 2021-theGBJournal- Trading at the domestic equities market turned negative today, following sell-offs of DANGCEM (-3.5%). Consequently, the benchmark index declined by 0.6% to 38,697.17 points. Accordingly, the Month-to-Date and Year-to-Date losses increased to -2.8% and -3.9%, respectively.

21 stocks posted gains while 11 stocks declined.

The total volume of trades declined by 54.0% to 169.35 million units, valued at NGN2.12 billion, and exchanged in 3,568 deals. AIICO was the most traded stock by volume at 19.67 million units, while DANGCEM was the most traded stock by value at NGN550.82 million.

Performance across sectors was mixed – the Insurance (+0.7%) and Consumer Goods (+0.4%) indices recorded gains, while the Industrial Goods (-1.7%) index declined. The Banking and Oil & Gas indices closed flat.

As measured by market breadth, market sentiment remained positive (1.9x), as 21 tickers gained, relative to 11 losers. INTBREW (+9.9%) and CHAMPION (+9.1%) recorded the largest gains of the day, while AFRINSURE (-8.3%) and SOVRENINS (-7.1%) topped the losers’ list.

Currency

The naira appreciated by 0.5% to NGN409.00/USD at the I&E window but stayed flat at NGN484.00/USD in the parallel market.

Money Market & Fixed Income

The overnight lending rate expanded by 383bps to 16.3%, following outflows for CBN’s weekly OMO auction.

The NTB secondary market was bearish, as the market adjusted to the higher rates at yesterday’s PMA. Thus, the average yield was higher by 74bps to 2.8%. Across the curve, the average yield was flat at the short end but expanded at the mid (+146bps) and long (+75bps) segments, following sell-offs of the 126DTM (+208bps) and 189DTM (+150bps) instruments, respectively. At the OMO secondary market, the average yield expanded slightly by 1bp to 6.8%.

The Treasury bonds secondary market turned bearish, as the average yield in the space expanded by 14bps to 9.2%. Across the benchmark curve, the average yield increased at the short (+33bps) and mid (+17bps) segments due to profit-taking on the JUL-2021 (+59bps) and MAR-2027 (+20bps) bonds, respectively. Conversely, the average yield declined at the long (-3bps) end due to demand for the MAR-2050 (-14bps) bond, respectively.

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