WED 06 JAN, 2021-theGBJournal- Trading in the Treasury bonds secondary market was bearish, as the average yield expanded by 4bps to 6.2%. Across the curve, average yield expanded at the short (+14bps) end, due to profit-taking on the MAR-2024 (+39bps) bond, but pared at the long (-1bp) end, as investors demanded the MAR-2036 (-8bps) bond. Average yield at the mid segment was flat.
At the money market, overnight lending rate declined by 25bps to 0.8%, in the absence of any significant outflows from the system.
Trading in the NTB secondary market turned bullish, as the average yield contracted by 7bps to 0.4%. Across the curve, average yield contracted at the short (-23bps) and mid (-1bp) segments, following buying interests in the 8DTM (-34bps) and 113DTM (-4bps) instruments, respectively; the long end stayed flat. Similarly, average yield contracted by 7bps to 0.6% at the OMO secondary market.
At the CURRENCY MARKET, the naira weakened by 0.2% to NGN394.50/USD at the investors’ and Exporters’ (I&E) window in contrast to the 0.1% to NGN393.83/USD gain Tuesday but was flat at NGN470.00/USD in the parallel market.
Meanwhile, the domestic equities market snapped yesterday’s loss, as the All-Share Index notched a 0.2% gain to close at 40,465.15 points. The positive performance was supported by interests in ZENITHBANK (+2.0%), UBA (+2.4%) and INTBREW (+2.5%) stocks. Consequently, Month-to-Date and Year-to-Date returns both increased to +0.5%.
The total volume traded declined by 46.4% to 249.55 million units, valued at NGN2.18 billion, and exchanged in 6,090 deals. ACCESS was the most traded stock by volume at 21.90 million units, while GUARANTY was the most traded stock by value at NGN342.03 million.
Analysing by sectors, the Insurance (+3.0%), Banking (+0.8), Consumer Goods (+0.3%) and Oil & Gas (+0.1%) indices recorded gains, while the Industrial Goods index closed flat.
Market sentiment, as measured by market breadth, was positive (1.4x), as 22 tickers gained, relative to 16 losers. NEM (+9.7%) and BOCGAS (+9.5%) topped the gainers’ list, while SOVRENINS (-8.3%) and ETERNA (-8.2%) recorded the largest losses of the day.-With Cordros Research.