…Naira gains at I&E Window, depreciates 0.2% to NGN465.00/USD in the parallel market
MON, 09 NOV, 2020-theGBJournal- Trading in the domestic equities market opened the week on a positive note, as investors took particular interests in market large caps DANGCEM (+6.0%), MTNN (+4.2%), BUACEMENT (+4.4%) and some Tier 1 banks. Against the foregoing, the All-Share Index surged by 4.0% to 32,243.05 points. Accordingly, Month-to-Date and Year-to-Date gains increased to +5.6% and +20.1%, respectively.
The total volume of trades decreased by 0.2% to 636.01 million units, valued at NGN8.24 billion and exchanged in 7,210 deals. ZENITHBANK was the most traded stock by volume and value at 70.22 million units and NGN1.66 billion, respectively.
Sectoral performance reflected the general market sentiment, as all sector indices recorded gains. The Banking (+6.7%) and Industrial Goods (+5.5%) indices led the gains, followed by the Consumer Goods (+1.8%), Insurance (+1.6%) and Oil & Gas (+1.0%) indices.
Market sentiment, as measured by market breadth, was positive (4.5x), as 49 tickers gained, relative to 11 losers. OANDO (+10.0%) and NNFM (+10.0%) closed limit up and topped the gainers’ list, while NCR (-10.0%) and LEARNAFRCA (-8.7%) recorded the largest losses of the day.
The naira appreciated by 0.1% to NGN385.67/USD at the I&E window but depreciated by 0.2% to NGN465.00/USD in the parallel market.
Money Market & Fixed Income
The overnight lending rate contracted by 407bps to 2.3% in the absence of any significant outflows from the system.
At the NTB secondary market, activities were bearish, as average yield expanded by 2bps to 0.5%. Across the curve, average yield contracted at the short (-3bps) end, due to demand for the 94DTM (-14bps) instrument, but expanded at the mid (+1bp) and long (+5bps) segments, following sell-offs of the 185DTM (+12bps) and 234DTM (+26bps) instruments, respectively. Elsewhere, average yield contracted by 3bps to 0.2% at the OMO secondary market.
Trading in the Treasury bond secondary market was mixed, with a bearish tilt, as average yield expanded slightly by 1bp to 3.9%. Across the curve, average yield contracted at the short (-1bp) and mid (-5bps) segments, following buying interests in the JAN-2022 (-9bps) and MAR-2027 (-21bps) bonds, respectively, but expanded at the long (+5bps) end, due to sell-offs of the APR-2037 (+20bps) bond.