Home Companies&Markets Markets Wrap: All-Share index slips by 0.4%, average yield expands at mid...

Markets Wrap: All-Share index slips by 0.4%, average yield expands at mid and long segments following sell-offs of Jul-2030 and Jul-2034 bonds

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NGX Exchange Trading Floor

…Naira depreciats at I&E window by 0.2%

MON 12 APRIL, 2021-theGBJournal- The All-Share index fell by 0.4% to 38,712.55 points on Monday as muted trading dominated after investors sold off STANBIC stocks. 14 stocks posted gains while 20 stocks declined. STANBIC was the biggest decliner, falling -9.9% followed by GUINESS which fell -9.93% and CUSTODIAN which traded -8.40% by closing gong.

The Month-to-Date and Year-to-Date losses increased to -0.9% and -3.9%, respectively with the muted trading.

The total volume of trades decreased by 20.8% to 194.02 million units, valued at NGN1.36 billion, and exchanged in 4,290 deals. FIDELITYBK was the most traded stock by volume at 30.88 million units, while ACCESS was the most traded stock by value at NGN188.99 million.

Sectoral performance was broadly negative, following declines across the Consumer Goods (-1.0%), Insurance (-0.9%) and Oil & Gas (-0.1%) indices. The Banking (+0.2%) index was the lone gainer of the day while the Industrial Goods index closed flat.

As measured by market breadth, market sentiment was negative (0.7x), as 20 tickers lost relative to 14 gainers. STANBIC (-9.9) and GUINNESS (-9.9%) topped the losers’ list, while UAC-PROP (+9.3%) and ROYALEX (+8.3%) were the top gainers of the day.

Meanwhile, the local currency, the naira depreciated at the I&E window by 0.2% to NGN409.75/USD but appreciated by 0.6% to NGN482.00/USD in the parallel market.

Money Market & Fixed Income

At money market, the overnight lending rate fell by 25bps to 12.3%, in the absence of any significant outflows from the system.

Trading in the NTB secondary market was muted, as the average yield closed flat at 4.4%. Across the curve, the average yield was flat at the short (2.4%), mid (3.4%) and long (6.0%) segments. Elsewhere, the OMO segment’s average yield contracted by 9bps to 6.8%.

The Treasury bond secondary market activity was bullish, as the average yield expanded by 5bps to 10.2%. Across the benchmark curve, average yield expanded at the mid (+4bps), and long (+12bps) segments following sell-offs of the JUL-2030 (+18bps) and JUL-2034 (+77bps) bonds but contracted at the short (-2bps) end as market participants bought up the JAN -2022 (-7bps) bond.

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