THUR, MAY 14 2020-theG&BJournal- Sentiments in the Nigerian equities market remained positive, as demand for DANGCEM (+1.7%), (+4.0%) and some banking stocks spurred today’s gain. Thus, the All-Share Index increased by 0.8% to 23,892.92 points. Accordingly, Month-to-Date gain increased to 3.8%, as Year-to-Date losses moderated to -11.0%.
The total volume of trades increased by 14.8% to 182.74 million units, valued at NGN2.33 billion and exchanged in 4,542 deals. ZENITHBANK was the most traded stock by volume at 27.28 million units while GUARANTY was the most traded stock by value at NGN540.71 million.
Sectoral performance was broadly positive following gains in the Consumer Goods (+2.0%), Banking (+5.3%) and Industrial Goods (+0.6%) indices, and loss in the Insurance (+3.7%) index. The Oil and Gas index was flat.
Market sentiment, as measured by market breadth, was positive (1.3x), as 18 tickers gained, relative to 14 losers. FIDSON (+9.6%) and NPFMCRFBK (+9.5%) were the top gainers of the day, while CUSTODIAN (-9.5%) and UNITYBNK (-8.3%) recorded the largest losses.
The naira appreciated by 0.1% to NGN386.58/USD at the I&E window but was flat at NGN450.00/USD at the parallel market.
Money Market & Fixed Income
The overnight lending rate contracted by 323bps to 4.4%, as inflow from OMO maturities (NGN209.05 billion) hit the system.
Trading in the NTB secondary market was bullish as average yield contracted by 37bps to 2.3%. Yields at the short (-20bps), mid (-79bps) and long (-1bp) segments contracted following demand for the 77DTM (-67bps), 119DTM (-85bps) and 273DTM (-1bp) instruments, respectively. Similarly, average yield contracted by 61bps to 8.9% in the OMO secondary market.
Trading in the Treasury bond secondary market was bullish, as average yield contracted by 4bps to 10.2%. Across the curve, yields at the short (-1bp), mid (-12bps) and long (-1bp) segments contracted, following recorded buying interests in the JUL-2021 (-4bps), APR-2029 (-21bps) and MAR-2036 (-2bps) bonds, respectively.-With Cordros Research