Home Companies&Markets MARKETS BRIEF: Treasury bonds fall by 4bps to 7.9% to start the...

MARKETS BRIEF: Treasury bonds fall by 4bps to 7.9% to start the month, investors trade N6.02 billion worth of stocks in a depressed market


MON 01 FEB, 2021-theGBJournal- The Treasury bonds secondary market opened the month with bullish trading, as average yield declined by 4bps to 7.9%. Across the curve, average yield expanded at the short (+10bps) end, following profit-taking on the JAN-2022 (+164bps) bond. Conversely, average yield declined at the mid (-4bps) and long (-15bps) segments following buying interests in the JUL-2030 (-10bps) and MAR-2050 (-28bps) bonds, respectively.

At the MONEY MARKET, the overnight lending rate contracted by 75bps to 10.3%, in the absence of any significant outflows from the system.

Trading in the NTB secondary market was bearish, as average yield expanded by 17bps to 1.2%. Across the curve, most of the day’s activity was witnessed at the long (+38bps) end, as market participants sold off the 346DTM (+176bps) instrument. Average yield was flat at the short and mid segments. In the same vein, average yield expanded by 17bps to 1.8% at the OMO segment.

EQUITIES: Trading in the domestic equities market started the week and month on a sour note, as profit-taking on NESTLE (-3.7%), ACCESS (-1.6%) and FLOURMILL (-3.2%) stocks triggered a 0.1% decline in the All-Share Index to 42,357.90 points – its first loss in six consecutive session. Also, the Month-to-Date return settled at -0.1%, while the Year-to-Date gain moderated to 5.2%.

The total volume of trades declined by 12.4% to 586.81 million units, valued at NGN6.02 billion, and exchanged in 7,611 deals. UBN was the most traded stock by volume at 79.59 million units, while ZENITHBANK was the most traded stock by value at NGN858.97 million.

Analysing by sectors, the Consumer Goods (-1.0%) and Banking (-0.1%) indices recorded declines, while the Insurance (+0.4%) and Oil & Gas (+0.2%) indices posted gains. The Industrial Goods index was flat.

Market sentiment, as measured by market breadth, was positive (1.2x), as 33 tickers gained, relative to 28 losers. HONYFLOUR (+10.0%) and CHAMPION (+10.0%) topped the gainers’ list, while ROYALEX (-10.0%) and GUINEAINS (-9.1%) recorded the largest losses of the day.

Currency-The naira was flat at the I&E window and parallel market at NGN394.00/USD and NGN480.00/USD, respectively.-With Cordros Research

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