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Markets Wrap: Stocks close lower with Insurance, Banking and Industrial Goods indices recording losses, Treasury bonds yield up by 16bps to 11.1%

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NGX Exchange Trading Floor

THUR 15 APRIL, 2021-theGBJournal-Negative sentiments resurfaced in the local bourse today, as the benchmark index declined by 0.2% to 38,571.89 points following profit-taking on WAPCO (-3.1%) and UBN (-7.1%) stocks. Accordingly, the Month-to-Date and Year-to-Date losses increased to -1.2% and – 4.2%, respectively.

The total volume of trades increased by 14.9% to 319.43 million units, valued at NGN1.78 billion, and exchanged in 4,158 deals. FIDELITYBK was the most traded stock by volume at 46.71 million units, while GUARANTY was the most traded stock by value at NGN352.44 million.

Analysing by sectors, the Insurance (-2.8%), Banking (-1.0%), and Industrial Goods (-0.2%) indices recorded losses, while the Consumer Goods (+0.1%) and Oil & Gas (+0.1%) indices recorded gains.

As measured by market breadth, market sentiment was negative (0.6x), as 26 tickers declined relative to 16 gainers. UAC-PROP (-10.0%) and PZ (-9.8%) topped the losers’ list, while GUINNESS (+10.0%) and FTNCOCOA (+9.3%) recorded the most significant gains of the day.

Currency

The naira stayed flat at NGN410.50/USD and NGN482.00 at the I&E window and parallel market, respectively.

Money market & Fixed Income

The overnight lending rate expanded by 275bps to 15.0%, following outflows for CBN’s weekly OMO auction.

The NTB secondary market was bullish, as the average yield contracted by 7bps to 4.4%. Across the curve, the average yield was flat at the short end but contracted at the mid (-3bps) and long (-13bps) segments, following buying interests in the 154DTM (-5bps) and 350DTM (-117bps) instruments, respectively. Elsewhere, the OMO segment’s average expanded by 11bps to 7.0%.

Trading in the Treasury bond secondary market remained bearish, as the average yield expanded by 16bps to 11.1%. Across the benchmark curve, average yield contracted at the short (-11bps) end, following demand for the JAN-2022 (-65bps) bond but expanded at the mid (+52bps) and long (+20bps) segments, following sell-offs of the MAR-2027 (+63bps) and APR-2049 (+70bps) bonds, respectively.

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