MON, OCT 12 2020-theG&BJournal-Trading in the domestic equities market opened the week on a bearish note, as profit-taking in BUACEMENT (-1.5%) and MTNN (-0.4%) stocks caused a 0.3% decline in the benchmark index to 28,337.49 points. Accordingly, Month-to-Date and Year-to-Date gains both moderated to 5.6%.
The total volume traded declined by 3.9% to 369.18 million units, valued at NGN5.06 billion and exchanged in 4,750 deals. UBA was the most traded stock by volume at 95.05 million units while GUARANTY was the most traded stock by value at NGN1.99 billion.
Sectoral performance was broadly negative, following losses in the Insurance (-1.8%), Consumer Goods (-0.9%), Industrial Goods (-0.5%) and Banking (-0.1%) indices. The Oil & Gas (+1.4%) index was the sole gainer of the day.
Market sentiment, as measured by the market breadth, was negative (0.8x), as 16 tickers lost, relative to 13 gainers. INTBREW (-9.1%) and MANSARD (-5.7%) recorded the largest losses of the day, while ETERNA (+9.9%) and UNIONDAC (+8.3%) topped the gainers’ list.
The naira was flat at the I&E window at NGN386.00/USD, while it weakened by 0.7% to NGN460.00/USD in the parallel market.
Money Market & Fixed Income
The overnight lending rate contracted by 138bps to 3.5%, in the absence of any significant outflow from the system.
Trading in the NTB secondary market was bullish, as average yield declined by 6bps to 1.4%. Across the curve, average yield contracted at the short (-5bps), mid (-9bps) and long (-5bps) segments, following buying interests in the 94DTM (-7bps), 136DTM (-20bps) and 339DTM (-16bps) instruments, respectively. In the same vein, average yield contracted by 9bps to 1.3% at the OMO secondary market.
At the Treasury bond secondary market, trading was bullish, as average yield contracted by 11bps to 6.0%. Across the curve, average yield declined at the mid (-47bps) and long (-2bps) segments, due to demand for the APR-2029 (-113bps) and APR-2037 (-8bps) bonds, respectively. Conversely, average yield expanded at the short (+4bps) end, following sell-off of the JAN-2022 (+19bps) bond.