WED 16 JUNE, 2021-theGBJournal- Trading in the domestic equities market was negative for most of the day; however, investors’ interest in MTNN (+1.2%) spurred the first gain of the week. Precisely, the benchmark index inched higher by 0.2% to 38,564.70 points. Consequently, the Month-to-Date return increased to +0.3%, while the Year-to-Date loss moderated to -4.2%.
The total volume traded increased by 1.8% to 302.72 million units, valued at NGN2.81 billion, and exchanged in 4,387 deals. STERLNBANK was the most traded stock by volume at 37.47 million units, while GUARANTY was the most traded stock by value at NGN745.34 million.
Sectoral performance was mixed, as the Oil & Gas (+0.9%) and Consumer Goods (+0.2%) indices gained, while the insurance (-0.5%) and Banking (-0.3%) indices declined. The Industrial Goods index was flat.
As measured by market breadth, market sentiment turned positive (1.4x) as 27 tickers gained, relative to 20 losers. CORNERST (+10.0%) and MORISON (+9.7%) recorded the most significant gains of the day, while ABBEYBDS (-9.5%) and CHIPLC (-9.5%) topped the losers’ list.
The naira depreciated by 0.1% to NGN412.00 at the I&E window but appreciated by 0.6% to NGN502.00/USD in the parallel market.
Money Market & Fixed Income
The overnight lending rate expanded by 108bps to 16.3%, following outflows for NTB auction (NGN14.83 billion).
Trading in the NTB secondary market was quiet, as investors await today’s NTB auction results. Thus, the average yield stayed flat at 6.4%. Elsewhere, the OMO segment’s average yield pared by 2bps to 9.7%.
The Treasury bond secondary market turned bullish, as the average yield contracted by 3bps to 12.1%. Across the benchmark curve, the average was flat at the short and mid segments but contracted at the long (-8bps) end due to demand for the JUL-2045 (-31bps) bond.
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