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Markets Wrap: Equities turn positive, gains 0.47%, Bond yield expands 1bp to 8.5%, naira sells at N462.00/USD


WED, JULY 01 2020-theG&BJournal The domestic bourse started the new month positively, as rebounds in BUACEMENT (+8.5%) and WAPCO (+5.0%) stocks spurred today’s gain. Thus, the All-Share Index advanced by 0.5% to 24,479.22 points. Accordingly, Year-to-Date loss moderated to -8.4%.

The total volume of trades decreased by 29.5% to 198.01 million units, valued at NGN1.04 billion and exchanged in 3,772 deals. WAPIC was the most traded stock by volume at 30.28 million units while GUARANTY was the most traded stock by value at NGN158.00 million.

Analysing by sectors, the Banking (-0.9%), Insurance (-0.8%) and Consumer Goods (-0.5%) indices recorded declines while the Industrial Goods (+1.4%) and Oil & Gas (+0.3%) indices closed positive.

Market sentiment, as measured by market breadth, was negative (0.5x), as 22 tickers declined, relative to 12 gainers. NEIMETH (-9.7%) and LEARNAFRCA (-7.7%) were the top losers of the day, while CADBURY (+9.6%) and STERLNBANK (+9.6%) recorded the largest gains.


The naira was flat at the I&E window, at NGN386.50/USD while it weakened at the parallel market by 0.4% to NGN462.00/USD.

Money Market & Fixed Income

The overnight lending rate contracted by 310bps to 12.9%, following improved system liquidity.

The Treasury bills secondary market was bullish, as average yield contracted by 8bps to 2.1%. Across the curve, yield contracted at the short (-16bps) and mid (-5bps) segments, as market participants demanded the 93DTM (-34bps) and 135DTM (-27bps) instruments, respectively; yield at the long end was flat. Elsewhere, average yield expanded by 9bps to 5.1% at the OMO secondary market.

Trading in the Treasury bond secondary market was mixed, albeit with a bearish tilt, as average yield expanded slightly by 1bp to 8.5%. Across the curve, yield expanded at the short (+2bps) end, as investors sold-off the APR-2023 (+17bps) bond; yields at the mid and long segments were flat.-With Cordros Research

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