…Overnight lending rate expands by 50bps to 15.3%
WED 28 APRIL, 2021-theGBJournal-Mixed sentiments persisted in the local bourse, as sell-off of large cap DANGCEM (-7.3%) matched the gains recorded in NB (+3.9%), SEPLAT (+3.6%) and some banking names. Consequently, the All-Share Index traded flat at 39,303.09 points, with Month-to-Date and Year-to-Date returns unchanged at +0.7% and -2.4%, respectively.
The total volume of trades increased by 2.8% to 259.51 million units, valued at NGN1.91 billion, and exchanged in 3,547 deals. FBNH was the most traded stock by volume and value at 69.48 million units and NGN514.30 million, respectively.
Analysing by sectors, the Insurance (-1.6%), Banking (-0.2%) and Consumer Goods (-0.1%) indices declined, the Oil & Gas (+2.0%) index was the lone gainer, while the Industrial Goods index closed flat.
As measured by market breadth, market sentiment was negative (0.8x), as 22 tickers declined relative to 18 gainers. FTNCOCOA (-10.0%) and NEIMETH (-9.0%) topped the losers’ list while CHIPLC (+10.0%) and PORTPAINT (+8.3%) recorded the most significant gains of the day.
The naira appreciated at the I&E window by 0.1% to NGN411.25/USD but stayed flat at NGN485.00/USD in the parallel market.
Money Market & Fixed Income
The overnight lending rate expanded by 50bps to 15.3%, following outflows for CBN’s FX Invisibles & SMEs auction.
Trading in the NTB secondary market was mixed, as the average yield was flat at 4.5%. Elsewhere, the OMO segment’s average yield expanded by 18bps to 7.9%.
The Treasury bond secondary market was mixed, albeit with a bearish tilt, as the average yield expanded by 1bp to 11.7%. Across the benchmark curve, average yield was flat at the short and mid segments, but expanded at the long (+2bps) end following the sell-off of the APR-2037 (+7bps) bond.