MON 25 JAN, 2021-theGBJournal- The Treasury bonds secondary market turned bullish in today’s session, as average yield expanded by 13bps to 7.0%. Across the curve, average yield expanded at the short (+38bps) end, following sell-off of the MAR-2024 (+167bps) bond, and declined at the mid (-3bps) segment, due to demand for the MAR-2027 (-10bps) bond; the long end was flat.
Currency: The naira weakened by 0.1% to NGN394.50/USD at the I&E window but was flat in the parallel market at NGN477.00/USD.
Money Market: The overnight lending rate declined by 400bps to 6.5%, following inflows into the system from FGN bond coupon payments (NGN37.96 billion).
Trading in the NTB secondary market started the week with bearish sentiments, as average yield expanded by 2bps to 0.5%. Across the curve, average yield expanded at the short (+6bps) and mid (+2bps) segments, following sell-offs of the 66DTM (+32bps) and 108DTM (+10bps) instruments, respectively. Average yield was flat at the long end. Similarly, average yield expanded by 32bps to 1.2% at the OMO secondary market.
Equities: Trading in the domestic equities market started the week on a positive note, following investors’ interests in DANGCEM (+0.9%), AIRTELAFRI (+0.4%) and UBN (+6.3%) stocks. Consequently, the benchmark index increased by 0.2% to 41,088.96 points. Accordingly, Month-to-Date and Year-to-Date returns increased to +2.0%.
The total volume traded declined by 43.7% to 333.10 million units, valued at NGN2.64 billion, and exchanged in 5,640 deals. TRANSCORP was the most traded stock by volume at 49.00 million units, while ZENITHBANK was the most traded stock by value at NGN418.97 million.
Analysing by sectors, the Industrial Goods (+0.5%), and Banking (+0.5%) indices gained, while losses were recorded in the Oil & Gas (-0.8%), Consumer Goods (-0.7%) and Insurance (-0.6%) indices.
Market sentiment, as measured by market breadth, was negative (0.7x), as 19 tickers lost, relative to 29 gainers. ROYALEX (-10.0%) and CILEASING (-10.0%) recorded the largest losses of the day, while ACADEMY (+10.0%) and MAYBAKER (+9.9%) topped the gainers’ list.-With Cordros Research