WED, JUN 24 2020-theG&BJournal-Weak sentiments continue to pervade the domestic bourse, as selloffs of large caps, SEPLAT (-10.0%) and NB (-3.6%,) led the market to its fifth consecutive loss. Precisely, the All-Share Index (ASI) dipped by 0.4% to 24,655.05 points. Accordingly, the Month-to-Date and Year-to-Date losses increased to -2.4% and -8.2%, respectively.
The total volume of trades increased by 12.7% to 189.25 million units, valued at NGN1.92 billion and exchanged in 3,364 deals. FBNH was the most traded stock by volume at 44.45 million units, while ZENITHBANK was the most traded stock by value at NGN349.37 million.
On sectoral performances, the Oil & Gas (-4.1%) and Consumer Goods (-1.6%) indices declined, while the Insurance (+0.9%) and Banking (+0.2%) indices closed higher. The Industrial Goods index closed flat.
Market sentiment, as measured by market breadth, was negative (0.8x), as 22 tickers declined, relative to 17 gainers. PZ (-10.0%) and SEPLAT (-10.0%) were the top losers of the day, while CHAMS (+9.5%) and CHAMPION (+8.0%) recorded the largest gains.
The naira weakened at the I&E window by 0.1% to NGN387.17/USD while it strengthened at the parallel market by 1.1% to NGN455.00/USD.
Money market & Fixed Income
The overnight lending rate expanded by 8bps to 15.8%, as system liquidity remained strained.
The Treasury bills secondary market was mixed, as average yield pared by 1bp to 2.2%. Across the curve, yield contracted at the mid (-3bps) segment following demand for the 155DTM (-20bps) instrument; yields at the short and long ends were flat. Elsewhere, average yield expanded by 4bps to 4.9% at the OMO secondary market.
Trading in the Treasury bond secondary market was mixed, albeit with bearish bias, as average yield expanded slightly by 2bps to 8.8%. Across the curve, yield expanded at the short (+9bps) end, as investors sold off the JAN-2022 (+55bps) bond, while they contracted at the long (-5bps) end, due to demand for the APR-2037 (-39bps) bond. Yield at the mid-segment was flat.