THUR, JULY 09 2020-theG&BJournal-Sentiments in the domestic bourse weakened, as losses across small caps stocks masked gains recorded in large caps, such as GUARANTY (+1.1%) and ZENITH (+0.6%). The impact of the preceding triggered a slight decline of 0.01% in the All Share Index to 24,276.56 points. Accordingly, Month-to-Date and Year-to-Date losses printed -0.8% and -9.6%, respectively.
The total volume of trades decreased by 17.4% to 192.08 million units, valued at NGN2.47 billion and exchanged in 3,833 deals. FIDELITYBK was the most traded stock by volume at 38.06 million units while GUARANTY was the most traded stock by value at NGN534.47 million.
Analysing by sectors, the Insurance (+0.6%), Banking (+0.6%) and Industrial Goods (+0.02%) indices gained, while the Consumer Goods (-0.6%) and Oil & Gas (-0.4%) indices recorded losses.
Market sentiment, as measured by market breadth, was negative (0.7x), as 15 tickers declined, relative to 10 gainers. CONOIL (-10.0%) and ARBICO (-9.5%) were the top losers of the day, while LAWUNION (+7.0%) and HONYFLOUR (+6.6%) recorded the largest gains.
The naira strengthened at the I&E window by 0.1% to NGN386.50/USD while it weakened at the parallel market by 0.4% to NGN463.00/USD.
Money Market & Fixed Income
The overnight lending rate contracted by 490bps to 16.10%, following inflows from OMO maturities (NGN92.54 billion) into the system.
The NTB secondary market was bullish, as average yield contracted by 5bps to 2.0%. Across the curve, yield contracted at the mid (-16bps) segment, due to demand for the 112DTM (-41bps) instrument; yields were flat at the short and long ends. Conversely, average yield expanded by 24bps to 5.6% at the OMO secondary market.
Meanwhile, trading in the Treasury bond secondary market was bearish, as average yield expanded by 7bps to 7.8%. Across the curve, yield expanded at the short (+2bps), mid (+2bps) and long (+15bps) segments, as investors sold off the MAR-2024 (+13bps), JUL-2030 (+9bps) and JUL-2034 (+39bps) bonds, respectively.-With Cordros Research.