…Treasury bond turns bullish as average yield contracted by 4bps to 12.2%
MON 10 MAY, 2021-theGBJournal- The All-Share Index advanced by 0.3% to 39,312.74 points as trading in the domestic bourse opened the week positively. Investors took particular interests in Tier 1 Banks – ZENITHBANK (+3.6%) and GUARANTY (+2.6%).
Today’s gain helped moderate the Month-to-date and Year-to-Date losses to -1.3% and -2.4%, respectively.
The total volume of trades increased by 35.7% to 324.19 million units, valued at NGN3.28 billion, and exchanged in 4,867 deals.
ETRANZACT was the most traded stock by volume at 72.18 million units, while ZENITHBANK was the most traded stock by value at NGN1.02 billion.
Analysing by sectors, the Banking (+2.9%), Insurance (+1.3%), and Industrial Goods (+0.1%) indices recorded gains, while losses were recorded in the Consumer Goods (-0.3%) and Oil & Gas (-0.1%) indices.
As measured by market breadth, market sentiment was positive (2.0x), as 24 tickers gained, relative to 14 losers. ABCTRANS (+9.7%) and REGALINS (+9.7%) recorded the most significant gains of the day, while UNITYBNK (-8.3%) and NEIMETH (-6.0%) topped the losers’ list.
The naira appreciated at the I&E window by 0.1% to NGN410.67/USD but stayed flat at NGN483.00/USD in the parallel market.
Money Market & Fixed Income
The overnight lending rate contracted by 25bps to 15.0%, in the absence of significant funding pressure on the system.
Trading in the NTB secondary market was bearish, as the average yield expanded by 14bps to 5.0%. Across the curve, the average yield was flat at the short end but expanded at the mid (+1bp) and long (+85bps) segments due to sell-offs of the 171DTM (+9bps) and 353DTM (+891bps) bills, respectively. Similarly, the OMO segment’s average yield expanded by 10bps to 8.5%.
The Treasury bond secondary market turned bullish, as the average yield contracted by 4bps to 12.2%. Across the benchmark curve, average yield expanded at the short (+1bps) end due to sell-offs of the JAN-2026 (+35bps) bond but stayed flat at the mid-segment and contracted at the long (-10bps) end following demand for the MAR-2035 (-21bps) bond.