Home Companies&Markets Markets Wrap: Selloffs drag ASI down 0-4%, naira sells N463.00/$ at parallel...

Markets Wrap: Selloffs drag ASI down 0-4%, naira sells N463.00/$ at parallel market and NTB average yield pared by 1bp to 1.9%

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STOCK EXCHANGE

TUE, JULY 14 2020-theG&BJournal-Selloffs in banking dragged the equities market to another record daily loss Tuesday with sentiments remaining on the weak side.

The All-Share Index declined by 0.4% to 24,114.59 points. Thus, Month-to-Date and Year-to-Date losses increased to -1.5% and -10.2%, respectively.

The total volume of trades decreased by 10.0% to 208.20 million units, valued at NGN1.06 billion and exchanged in 4,174 deals. STERLNBANK was the most traded stock by volume at 78.92 million units while GUARANTY was the most traded stock by value at NGN222.92 million.

Analysing by sectors, the Consumer Goods (+0.4%), Industrial Goods (+0.3%) and Insurance (+0.1%) indices posted gains, while the Banking (-2.8%) and Oil & Gas (-0.4%) indices recorded declines.

Market sentiment, as measured by market breadth, was negative (0.5x), as 15 tickers declined, relative to 8 gainers. ARBICO (-9.9%) and GLAXOSMITH (-9.4%) were the top losers of the day, while UNILEVER (+9.6%) and CHAMS (+4.6%) recorded the largest gains.

Currency

The naira was flat at the I&E window and parallel market at NGN386.00/USD and NGN463.00/USD, respectively.

Money Market & Fixed Income

The overnight lending rate expanded by 175bps to 12.9%, in the absence of any significant inflow into the system.

The NTB secondary market was mixed, as NTB average yield pared by 1bp to 1.9%. Across the curve, yield contracted at the short (-3bps) end, following interest in the 79DTM (-13bps) instrument; yield was flat at the mid and long segments. Elsewhere, average yield expanded slightly by 1bp to 5.7% at the OMO secondary market.

Similarly, trading in the Treasury bond secondary market was bullish, as average yield contracted by 5bps to 7.7%. Across the curve, yield contracted at the short (-13bps) and mid (-1bp) segments, as investors demanded the MAR-2024 (-50bps) and JUL-2030 (-2bps) bonds, respectively; yield was flat at the long end.

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