Home Companies&Markets MARKETS WRAP: Benchmark index sheds 0.1% to end day at 40,465.32 points,...

MARKETS WRAP: Benchmark index sheds 0.1% to end day at 40,465.32 points, Treasury bonds yield expands by 19bps to 9.1%, naira weakens

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STOCK EXCHANGE

WED 17 FEB, 2021-theGBJournal-Profit taking continued today in the domestic equities market, with BUACEMENT (-1.8%), GUINNESS (-3.4%) and ACCESS (-1.8%) stocks weighing down the bourse. Accordingly, the benchmark index ended the session 0.1% lower at 40,465.32 points. Sequentially, the Month-to-Date loss increased to 4.6%, while the Year-to-Date gain moderated to 0.5%.

The total volume traded declined by 31.5% to 244.20 million units, valued at NGN2.65 billion, and exchanged in 4,083 deals. FBNH was the most traded stock by volume at 52.31 million units, while MTNN was the most traded stock by value NGN557.11 million.

Sectoral performance was mixed, following declines across the Industrial Goods (-0.8%), Banking (-0.2%) and Consumer Goods (-0.1%) indices, and gains in the Insurance (+1.9%) and Oil & Gas (+0.2%) indices.

Market sentiment, as measured by market breadth, was negative (0.8x), as 21 tickers declined, relative to 17 gainers. BETAGLAS (-9.8%) and FIDSON (-8.6%) topped the losers’ list, while JBERGER (+9.7%) and HONYFLOUR (+9.6%) recorded the largest gains of the day.

Currency

The naira weakened by 0.1% and 1.1% to NGN410.00/USD and NGN478.00/USD at the I&E window and parallel market, respectively.

Money Market & Fixed Income

The overnight lending rate declined by 50bps to 2.3%, in the absence of any significant funding pressures on the system.

The NTB secondary market was mixed, as average yield was flat at 1.5%. Elsewhere, average yield at the OMO segment declined by 5bps to 6.3%.

The Treasury bonds secondary market was bearish, as average yield expanded by 19bps to 9.1%. Across the curve, average yield expanded at the mid (+3bps) and long (+21bps) segments, as investors sold off the JUL-2030 (+22bps) and JUL-2045 (+69bps) bonds, respectively. Conversely, average yield contracted at the short (-16bps) end, following buying interest in the APR-2023 (-37bps) bond.-With Cordros Research

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