Home Companies&Markets Markets Wrap: Naira touches N505.00/US$ at parallel market, equities swing back to...

Markets Wrap: Naira touches N505.00/US$ at parallel market, equities swing back to negative as NGX ASI drops 1.7% to 38,507.33 points

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TUE 15 JUNE, 2021-theGBJournal- Trading at the domestic equities market opened the week on a sour note, as late sell offs on AIRTELAFRI (-10.0%) underpinned a 1.7% decline in the ASI to 38,507.33 points. Accordingly, Month-to-Date gain moderated to +0.2% while Year-to-Date loss increased to -4.4%.

The total volume of trades increased by 2.9% to 297.35 million units, valued at NGN3.65 billion, and exchanged in 4,402 deals. ACCESS was the most traded stock by volume at 43.14 million units, while UHOMREIT was the most traded stock by value at NGN695.88 million.

Analysing by sectors, the Insurance (+0.4%), Banking (+0.2%) and Oil & Gas (+0.1%) indices closed higher while the Consumer Goods (-0.2%) index declined. The Industrial Goods index closed flat.

As measured by market breadth, market sentiment was negative (0.8x), as 25 tickers lost relative to 19 gainers. AIRTELAFRI (-10.0%) and OKOMUOIL (-9.4%) topped the losers’ list, while CWG (+9.7%) and BERGER (+6.7%) recorded the most significant gains of the day.

Currency

The naira depreciated at the I&E window and parallel market by 0.2% to NGN411.75/USD and 0.6% to NGN505.00 respectively.

Money Market & Fixed Income

The overnight lending rate dipped by 7.8ppts to 15.2%, following inflows to the system from OMO maturities (NGN46.00 billion).

The NTB secondary market closed flat, as the average yield was flat at 6.4%. Elsewhere, the average yield at the OMO segment expanded by 4bps to 9.7%.

Trading in the Treasury bond secondary market was mixed, as the average yield was flat at 12.2%. Across the benchmark curve, average yield was flat at the short and long ends but expanded at the mid (+2bps) segment, following sell-off of the JUL-2030 (+5bps) bond.-With Cordros Research

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