TUE 08 JUNE, 2021-theGBJournal- Sentiments in the domestic bourse turned positive as the All-Share Index advanced by 0.5% to 38,881.70 points, largely driven by investors’ demand for OKOMUOIL (+10.0%), DANGCEM (+2.3%) and FLOURMIL (+2.5%). Accordingly, Month-to-Date gain increased to +1.2% while Year-to-Date losses moderated to -3.5%.
The total volume of trades increased by 3.7% to 218.51 million units, valued at NGN1.59 billion, and exchanged in 3,630 deals. COURTVILLE was the most traded stock by volume at 35.82 million units, while ZENITHBANK was the most traded stock by value at NGN349.32 million.
Analysing by sectors, the Industrial Goods (+1.1%), Consumer Goods (+0.6%) and Oil and Gas (+0.1%) indices recorded gains while the Insurance (-1.6%) and Banking (-0.1%) indices declined.
As measured by market breadth, market sentiment was negative (0.9x), as 16 tickers losers relative to 15 gainers. CWG (-9.4%) and REGALINS (-8.2%) recorded the most significant losses of the day, while OKOMUOIL (+10.0%) and LEARNAFRCA (+9.0%) topped the gainers’ list.
The naira depreciated at the I&E window by 0.1% to NGN411.50/USD but stayed flat at NGN502.00/USD in the parallel market. Interbank rate traded flat at N410.25/$.
Money Market & Fixed Income
The overnight lending rate expanded by 17bps to 14.7%, as funding pressures outweighed inflows from OMO maturities (NGN80 billion).
The NTB secondary market traded flat, as market participants position for tomorrow’s primary auction. Thus, the average yield was unchanged at 6.3%.
Elsewhere, the average yield at the OMO segment expanded slightly by 1bp to 9.8%.
Trading in the Treasury bond secondary market was mixed, albeit with a bearish tilt, as the average yield expanded slightly by 1bp to 12.1%.
Across the benchmark curve, average yield expanded at the short (+3bps) end following sell-off of the MAR-2025 (+12bps) bond but pared at the long (-1bp) end due to demand for the MAR-2035 (-6bps) bond; the mid-segment closed flat.
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