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Markets Wrap: Equities in 8th consecutive daily gain as All-Share Index gains another 1.4%, naira weakens

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WED, MAY 06 2020-theG&BJournal- The domestic bourse recorded its 8th consecutive daily gain after today’s trading, as investors’ interest in some Tier 1 bank names, NB (10.0%) and DANGCEM (+0.6%) spurred today’s gain. Thus, the All-Share Index increased by 1.4% to 24,143.37 points. Accordingly, Month-to-Date gain increased to 4.9%, as Year-to-Date losses moderated to -10.1%.

The total volume of trades increased by 23.6% to 426.64 million units, valued at NGN4.10 billion and exchanged in 7,384 deals. FBNH was the most traded stock by volume at 91.92 million units while GUARANTY was the most traded stock by value at NGN1.05 billion.

The positive performance in the market today was reflective in the sectors, as all sectoral indices posted gains. The Banking (+5.3%) index led the gains, following gains in GUARANTY (+9.3%) and ZENITHBANK (+6.4%) stocks. The Insurance (+3.7%), Consumer Goods (+2.0%), Oil and Gas (+1.3%) and Industrial Goods (+0.6%) indices followed suit.

Market sentiment, as measured by market breadth, was positive (8.8x), as 35 tickers gained, relative to 4 losers. CHIPLC (+10.0%) and NB (+10.0%) were the top gainers of the day, while CILEASING (-6.0%) and UACN (-3.5%) were the top losers of the day.

Currency

The naira weakened by 0.1% to NGN384.50/USD at the I&E window, and by 1.6% to NGN437.00/USD in the parallel market.

Money & Fixed Income

The overnight lending rate contracted by 42bps to 4.3%, in the absence of any significant outflow from the system.

Trading in the NTB secondary market remained flat at 2.7% as retail volume continues to constitute trading activity in the segment. Elsewhere, average yield expanded by 3bps to 10.0% in the OMO secondary market.

Trading in the Treasury bond secondary market was mixed with a bearish bias, as average yield expanded by 1bp to 10.2%. Across the curve, yields at the short (-2bps) end contracted as slight buying interest was recorded in the JUL-2021 (-2bps) bond, while they expanded at the mid (+2bps) and long (+2bps) segments, following sell-offs of the FEB-2028 (+9bps) and APR-2049 (+14bps) bonds, respectively.-with Cordros Research

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