Home Companies&Markets Markets Wrap: Equities in modest decline, Bond yield contracts 5bps to 7.5%

Markets Wrap: Equities in modest decline, Bond yield contracts 5bps to 7.5%

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WED, JULY 22 2020-theG&BJournal-Trading in the Nigerian equities market was mixed, as most stocks traded sideways through the day’s session the All-Share index ended day’s trading slightly down at 24,173.53 points after a 0.4% loss in Tuesday’s trading. Accordingly, Month-to-Date and Year-to-Date losses were also flat at -1.3% and -9.9% respectively.

The total volume of trade increased by 32.4% to 402.64 million units, valued at N4.55 billion and exchanged in 3,252 deals. UACN was the most traded stock by volume at 136.77 million units while NB was the most traded stock by value at N1.63 billion.

Analysing by sectors, the Consumer Goods (+0.1%) and Oil & Gas (+0.04%) indices recorded marginal gains, while the Insurance (-0.6%) and Banking (-0.03%) indices declined. The industrial Goods index was flat.

Market sentiment, as measured by market breadth, was flat (1.0x), as 9 tickers gained, relative to 9 losers. ETERNA (+8.9%) and MAYBAKER (+7.9%) were the top gainers of the day, while GLAXOSMITH (-9.5%) and CHIPLC (-8.2%) recorded the largest losses.

Currency

The naira was flat at the I&E window and parallel market at NGN388.17/USD and NGN472.00/USD, respectively.

Money Market & Fixed Income

The overnight lending rate crashed by 30bps to 2.5%, following the healthy system liquidity.

The NTB secondary market was mixed, as average yield was flat at 1.8%. On the other hand, average yield contracted by 21bps to 4.9% at the OMO secondary market.

Elsewhere, trading in the Treasury bond secondary market was bullish, as average yield contracted by 5bps to 7.5%. Across the curve, yield contracted at the mid (-2bps) and long (-23bps) segments, due to demand for the JUL-2030 (-18bps) and JUL-2034 (-76bps) bonds, respectively, while they expanded at the short (+10bps) end, as investors sold off the MAR-2024 (+66bps) bond.

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