MON, MAY 11 2020-theG&BJournal- The Nigerian equities market started the week’s trading on a negative note, as profit-taking witnessed in GUARANTY (-4.3%) and ZENITHBANK (-2.3%) caused a 0.4% decrease in the All-Share Index. Thus, the NSE ASI settled at 23,950.83 points. Accordingly, Month-to-Date gain decreased to 4.0%, as Year-to-Date losses increased to -10.8%.
The total volume of trades decreased by 0.6% to 207.25 million units, valued at NGN1.78 billion and exchanged in 4,460 deals. FBNH was the most traded stock by volume at 44.11 million units while GUARANTY was the most traded stock by value at NGN585.02 million.
Performance across sectoral indices was negative, as losses in the Banking (-2.8%), Insurance (-0.2%) and Industrial Goods (-0.1%) indices reflected the overall market performance. Gains in the Oil and Gas (+0.6%) and Consumer Goods (+2.4%) indices did little to offset the losses.
Market sentiment, as measured by market breadth, was positive (1.1x), as 13 tickers gained, relative to 12 losers. UNILEVER (+10.0%) and JAIZBANK (+9.1%) were the top gainers of the day, while CAP (-9.8%) and WAPIC (-9.1%) were the top losers of the day.
The naira appreciated by 0.1% to NGN386.94/USD at the I&E window but was flat at NGN445.00/USD in the parallel market.
Money Market & Fixed Income
The overnight lending rate expanded by 192bps to 9.6%, following banks provisioning for CBN’s wholesale, Invisibles and SMEs FX auctions.
Trading in the NTB secondary market was mixed, as yields were unmoved at 2.7%. This is attributable to the quiet trading that has been existent in the space for a while. Elsewhere, average yield contracted by 21bps to 9.9% in the OMO secondary market.
Trading in the Treasury bond secondary market was mixed, albeit with a bearish tilt, as average yield expanded by 2bps to 10.3%. Across the curve, yields at the short (+12bps) end expanded following sell-offs of the JAN-2026 (+79bps) bond, while they pared by 1bp at the mid-segment, following slight demand for MAR-2027 (-2bps) bond. The long end was flat.-With Cordros Research