Home Companies&Markets Markets Wrap: All-Share Index expands 1.4%, the biggest climb since May, naira...

Markets Wrap: All-Share Index expands 1.4%, the biggest climb since May, naira recovers 0.1% and Bonds yield contract 18bps to 7.4%

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THUR, JULY 23 2020-theG&BJournal– The All-Share index gained by 1.4% to 24,512.27 points – the biggest gain since rising by 1.8% on May 22, 2020, as sentiments in the market improved.

The gains were driven by large caps- DANGCEM (+10.0%) and MTNN (+0.8%), and  resulted in Month-to-Date return +0.1% while Year-to-Date loss moderated to -8.7%.

The total volume of trade declined by 59.2% to 164.29 million units, valued at N2.13 billion and exchanged in 2,986 deals. FBNH was the most traded stock by volume at 42.67 million units while DANGCEM was the most traded stock by value at N430.51 million.

On sectors, the Industrial Goods (+3.3%) and Insurance (+0.1%) indices recorded gains, whereas the Consumer Goods (-0.2%), Banking (-0.1%) and Oil & Gas (-0.04%) indices suffered losses.

Market sentiment, as measured by market breadth, was flat (1.0x), as 11 tickers gained, relative to 11 losers. DANGCEM (+10.0%) and JAIZBANK (+7.4%) were the top gainers of the day, while NEIMETH (-6.7%) and MBENEFIT (-4.8%) recorded the largest losses.

Currency

The naira appreciated by 0.1% to NGN388.00/USD at the I&E window, while it was flat at the parallel market at NGN472.00/USD.

Money Market and Fixed Income

The overnight lending rate contracted by 12bps to 2.4%, as system liquidity remains buoyant.

Trading in the NTB secondary market was mixed, with bullish sentiments, as average yield pared by 1bp to 1.7%. Across the curve, yield contracted at the short (-4bps) end, due to demand for the 70DTM (-22bps) instrument, while they were flat at the mid and long segments. On the other hand, average yield expanded by 5bps to 5.0% at the OMO secondary market.

Elsewhere, trading in the Treasury bond secondary market was bullish, as average yield contracted by 18bps to 7.4%. Across the curve, yield contracted at the short (-1bp) and long (-47bps) ends, due to demand for the JAN-2022 (-2bps) and MAR-2050 (-85bps) bonds, respectively; yield was flat at the mid-segment.-With Cordros Research

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