MON, MAY 18 2020-theG&BJournal- Investors’ interest in MTNN (+1.4%), WAPCO (+6.1%) and some Tier 1 bank stocks, caused the domestic bourse to open the week’s trading on a positive note. Thus, the All-Share Index advanced by 0.3% to 23,941.75 points. Accordingly, Month-to-Date gain increased to 4.0%, as Year-to-Date losses moderated to -10.8%.
The total volume of trades increased by 49.5% to 331.00 million units, valued at NGN2.93 billion and exchanged in 5,544 deals. ACCESS was the most traded stock by volume at 83.56 million units while ZENITHBANK was the most traded stock by value at NGN842.87 million.
Analysing by sectors, the Consumer Goods (-1.4%), Insurance (-1.1%) and Oil and Gas (-0.1%) indices declined, while the Industrial Goods (-1.8%) and Banking (-0.3%) indices recorded gains.
Market sentiment, as measured by market breadth, was positive (1.8x), as 24 tickers gained, relative to 13 losers. OKOMUOIL (+9.9%) and NEIMETH (+9.7%) were the top gainers of the day, while LASACO (-7.4%) and CORNERST (-6.8%) were the top losers of the day.
The naira depreciated by 0.09% to NGN386.33/USD at the I&E window but was flat at NGN455.00/USD at the parallel market.
Money market & fixed income
The overnight lending rate contracted by 108bps to 2.3%, in the absence of significant outflows from the system.
Trading in the NTB secondary market was bearish, as average yield expanded by 16bps to 2.4%. Across the curve, yields expanded at the mid (+23bps) and long (+19bps) segments, following sell-offs of the 164DTM (+36bps) and 178DTM (+42bps) instruments, respectively. The short end was flat. Elsewhere, average yield contracted by 15bps to 8.3% in the OMO secondary market.
Trading in the Treasury bond secondary market was bullish, as average yield contracted by 2bps to 10.6%. Across the curve, yields at the short (-2bps), mid (-4bps) and long (-1bp) segments contracted following demand for the JUL-2021 (-6bps), APR-2029 (-5bps) and MAR-2036 (-10bps) bonds, respectively.-with Cordros Research