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Markets Wrap: Equities log 0.1% gain after two straight days of losses, CBN bills fully allotted

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WED, MAY 13 2020-theG&BJournal-The Nigerian equities market recorded a marginal gain after today’s trading session, as investors’ demand for banking stocks, UNILEVER (+9.9%), and MOBIL (+9.9%) covered for the loss in market’s heavyweight MTNN (-1.4%). Thus, the All-Share Index advanced by 0.1% to 23,709.44 points. Accordingly, Month-to-Date gain increased to 3.0%, as Year-to-Date losses moderated to -11.7%.

The total volume of trades increased by 2.2% to 159.24 million units, valued at NGN1.54 billion and exchanged in 3,573 deals. FBNH was the most traded stock by volume and value at 50.77 million units and NGN242.09 million, respectively.

Sectoral performance was positive, as all sector indices recorded gains. The Oil and Gas (+2.7%) index led the day’s gains, followed by the Insurance (+1.9%), Banking (+0.6%) and Consumer Goods (+0.4%) indices. The Industrial Goods (+0.0%) index was flat.

Market sentiment, as measured by market breadth, was positive (2.9x), as 20 tickers gained, relative to 7 losers. UNILEVER (+9.9%) and MOBIL (+9.9%) were the top gainers of the day, while JAIZBANK (-6.5%) and UNIONDAC (-6.5%) recorded the largest losses of the day.

Currency

The naira was flat at NGN386.94/USD and NGN450.00/USD at the I&E window and parallel market, respectively.

Money Market & Fixed Income

The overnight lending rate contracted by 57bps to 7.6%, in the absence of any significant outflows from the system.

Trading in the NTB secondary market was bullish, as average yield contracted by 36bps to 2.3%. Yields contracted at the short (-17bps) and mid (-67bps) segments, following demand for the 78DTM (-67bps), and 120DTM (-84bps) instruments, respectively; the long end was flat. At today’s NTB PMA, the CBN fully allotted NGN142.76 billion worth of bills – NGN19.78 billion of the 91-day, NGN40.09 billion of the 182-day and NGN82.89 billion of the 364-day – at respective stop rates of 2.50% (previously 1.85%), 2.85% (previously 2.50%), and 3.84% (previously 3.84%). Elsewhere, average yield contracted by 8bps to 9.4% in the OMO secondary market.

Trading in the Treasury bond secondary market was bullish, as average yield pared by 2bps to 10.6%. Across the curve, yields contracted at the mid (-9) segment, following demand for the APR-2029 (-21bps) bond. The short and long ends were flat.-with Cordros Research.

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