TUE, OCT 13 2020-theG&BJournal-The local bourse recorded a marginal gain, but closed flat following investors interest in MTNN (+1.4%) and some banking stocks. As a result, the All Share Index was flat at 28,344.04 points, with Month-to-Date and Year-to-Date gains both increasing to 5.6%.
The total volume of trades increased by 45.1% to 535.83 million units, valued at NGN5.02 billion and exchanged in 4,498 deals. REGALINS was the most traded stock by volume at 246.00 million units while GUARANTY was the most traded stock by value at NGN3.00 billion.
Analyzing be sectors, the Consumer Goods (+0.9%), Insurance (+0.3%) and Oil & Gas (+0.1%) indices recorded gains, the Banking (-1.2%) index recorded a loss, while the Industrial Goods index closed flat.
Market sentiment, as measured by the market breadth, was positive (1.2x), as 18 tickers gained relative to 15 losers. ETERNA (+9.8%) and INTBREW (+9.6%) topped the gainers’ list, while ETRANZACT (-9.8%) and ROYALEX (-7.4%) recorded the largest losses of the day.
The naira remained flat at the I&E window at NGN386.00/USD, while it further depreciated by 0.2% to NGN461.00/USD in the parallel market.
Money Market & Fixed Income
The overnight lending rate expanded by 17bps to 3.7%, following funding pressures from FX Invisibles and SMEs auction (USD110.00 million) debits.
Trading in the NTB secondary market was mixed, as market participants anticipate tomorrow’s PMA, where the CBN will be rolling over NGN104.88 billion worth of maturities. Thus, average yield was flat at 1.4%. Elsewhere, average yield expanded by 7bps to 1.4% at the OMO secondary market.
Activity in the Treasury bond secondary market ended on a bullish note, as average yield contracted by 7bps to 6.0%. Across the curve, average yield expanded slightly at the mid (+3bps) segment, following sell-off of the MAR-2027 (+6bps) bond, while it declined at the long (-19bps) end, due to demand for the MAR-2050 (-45bps) bond. Average yield at the short end was unchanged.