WED, OCT 14 2020-theG&BJournal-The Nigerian equities market was little changed Wednesday, as early session gains in large-cap Consumer Goods names were offset by late profit taking across tier I banks. Thus, the All-Share index closed flat at 28,344.33 points. Accordingly, the Month-to-Date gain and Year-to-Date stood at 5.6%.
The total volume of trades declined by 59.2% to 218.42 million units, valued at NGN3.14 billion and exchanged in 3,896 deals. ZENITHBANK was the most traded stock by volume and value at 53.05 million units and NGN1.06 billion.
Sectoral performance was broadly positive, following gains in the Insurance (+0.6%), Banking (+0.5%), Consumer Goods (+0.2%) and Industrial Goods (+0.2%) indices. The Oil & Gas (-0.2%) index was the sole loser of the day.
Market sentiment, as measured by the market breadth, was positive (1.3x), as 14 tickers gained relative to 11 losers. ETERNA (+9.8%) and ACADEMY (+7.4%) topped the gainers’ list, while ETRANZACT (-9.9%) and WEMABANK (-5.2%) recorded the largest losses of the day.
The naira appreciated marginally, but closed flat at NGN385.83/USD at the I&E window, while it depreciated by 0.2% to NGN462.00/USD in the parallel market.
Money Market & Fixed Income
The overnight lending rate contracted by 104bps to 2.6%, in the absence of any significant outflows from the system.
Trading in the NTB secondary market was bearish, as average yield expanded by 6bps to 1.4%. Across the curve, yield expanded at the mid (+6bps) and long (+10bps) segments, as market participants sold-off the 197DTM (+32bps) and 211DTM (+42bps) instruments, respectively; yield was flat at the short end. Elsewhere, average yield was unchanged at 1.4%, at the OMO secondary market.
Trading in the Treasury bond secondary market was bullish, as average yield contracted by 3bps to 5.9%. Across the curve, average yield declined at the short (-6bps), mid (-3bps) and long (-1bp) segments, due to demand for the JAN-2022 (-39bps), APR-2029 (-6bps) and APR-2037 (-8bps) bonds, respectively.-With Cordros Research.