THUR, JUN 25 2020-theG&BJournal- The domestic equities market sustained its downward trend for the sixth consecutive session, as investors took profits on heavyweights MTNN (-0.4%), ZENITHBANK (-1.5%) and FBNH (-0.9%). Precisely, the All-Share Index dipped by 0.1% to 24,625.24 points. Accordingly, the Month-to-Date and Year-to-Date losses increased to -2.5% and -8.3%, respectively.
The total volume of trades decreased by 31.2% to 130.28 million units, valued at NGN1.62 billion and exchanged in 3,413 deals. ZENITHBANK was the most traded stock by volume at 18.95 million units, while MTNN was the most traded stock by value at NGN552.32 million.
Sectoral performance was broadly negative following losses in the Insurance (-0.3%) and Banking (-0.2%) indices. The Consumer Goods, Industrial Goods and Oil & Gas indices were flat, as large cap stocks in the respective indices traded sideways.
Market sentiment, as measured by market breadth, was positive (1.1x), as 9 tickers gained, relative to 8 losers. NEIMETH (+9.7%) and WEMABANK (+9.1%) were the top gainers of the day, while LINKASSURE (-9.4%) and JAPAULOIL (-7.7%) recorded the largest losses.
The naira weakened at the I&E window and parallel market by 0.03% and 0.4% to NGN387.56/USD and NGN457.00/USD, respectively.
Money Market and Fixed Income
The overnight lending rate expanded by 117bps to 15.8%, in the absence of any significant inflows to the system.
The Treasury bills secondary market was bearish, as average yield expanded by 6bps to 2.2%. Across the curve, yield expanded at the short (+15bps) end, as market participants sold off the 35DTM (+82bps) instrument; yields at the mid and long segments were flat. Similarly, average yield expanded by 8bps to 5.0% at the OMO secondary market.
Trading in the Treasury bond secondary market was bullish, as average yield pared by 1bp to 8.8%. Across the curve, yield expanded at the short (+4bps) end, as investors sold off the JAN-2026 (+23bps) bond, while they contracted at the mid (-8bps) and long (-1bp) segments, due to demand for the MAR-2027 (-32bps) and MAR-2050 (-2bps) bonds, respectively.-with Cordros Research