Home Companies&Markets Markets Wrap: ASI advances by 1.3%, naira trades at N386.50/USD at the...

Markets Wrap: ASI advances by 1.3%, naira trades at N386.50/USD at the I&E window

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Nigeria stock exchange
Nigeria stock exchange

THUR, MAY 21 2020-theG&BJournal- After today’s trading, the NSE ASI advanced by 1.3% to 24,758.39 points, following investors’ continued interest in banking stocks and big names – specifically BUACEMENT (+9.9%) and UNILEVER (+9.3%). Consequently, Month-to-Date return increased to 7.6%, as Year-to-Date losses moderated to -7.8%.

The total volume of trades decreased by 19.7% to 350.77 million units, valued at NGN3.71 billion and exchanged in 5,239 deals. ZENITHBANK was the most traded stock by volume and value at 57.42 million units and NGN961.40 million, respectively.

Sectoral performance remained positive, following gains in the Industrial Goods (+5.7%), Oil and Gas (+1.4%), Banking (+1.4%), Insurance (+1.0%) and Consumer Goods (+0.4%) indices.

Market sentiment, as measured by market breadth, was positive (3.1x), as 28 tickers gained, relative to 9 losers. REDSTAREX (+9.9%) and MOBIL (+9.9%) were the top gainers of the day, while ARBICO (-9.9%) and OANDO (-5.8%) were the top losers of the day.

CURRENCY

The naira depreciated by 0.02% to NGN386.50/USD at the I&E window but was flat at NGN460.00/USD at the parallel market.

MONEY MARKET & FIXED INCOME

The overnight lending rate contracted by 17bps to 2.0%, in the absence of significant outflows from the system.

Trading in the NTB secondary market was bearish, as average yield expanded by 9bps to 2.4%. Across the curve, yields expanded at the short (+2bps) and mid (+28bps) segments, as market participants sold off the 98DTM (+11bps) and 175DTM (+42bps) instruments, respectively, while they contracted at the long (-11bps) end, following demand for the 189DTM (-28bps) instrument. Elsewhere, average yield contracted by 35bps to 6.3% in the OMO secondary market.

Trading in the Treasury bond secondary market was mixed, with a bearish bias, as average yield expanded by 2bps to 10.5%. Across the benchmark curve, yield at the short (+5bps) end expanded, following sell-off of the APR-2023 (+35bps) bond; the mid and long segments were flat.-With Cordros Research

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