WED 24 MARCH, 2021-theGBJournal-The domestic equities rebounded from the bearish close yesterday, following investors’ buying interest in bellwethers – DANGCEM (+2.3%), MTNN (+2.4%) and STANBIC (10.0%). Accordingly, the benchmark index advanced by 1.0% to 39,085.78 points. Consequently, the Month-to-Date and Year-to-Date losses moderated to -1.8% and -2.9%, respectively.
The total volume traded declined by 11.8% to 361.90 million units, valued at NGN5.70 billion and exchanged in 4,018 deals. UBN was the most traded stock by volume at 79.35 million units, while GUARANTY was the most traded stock by value at NGN2.26 billion.
Performance across sectors was mixed following gains in the Consumer Goods (+0.7%), Industrial Goods (+0.7%) and Oil & Gas (+0.7%) indices and losses in the Insurance (-0.6%) and Banking (-0.2%) indices.
As measured by market breadth, market sentiment was positive (1.3x), as 20 tickers gained, relative to 15 losers. STANBIC (+10.0%) and NPFMCRFBK (+9.6%) topped the gainers’ list, while MRS (-9.7%) and WAPIC (-9.1%) recorded the largest losses of the day.
The naira appreciated by 0.3% to NGN408.75/USD at the I&E window, while it was flat at NGN486.00/USD in the parallel market.
Money Market & Fixed Income
The overnight lending rate expanded by 200bps to 14.0%, in the absence of any significant inflow to the system.
Trading in the NTB secondary market was bearish, as the average expanded by 36bps to 3.9%. The average yield was flat at the short and mid segments; the average yield expanded at the long (+80bps) end as market participants sold off the 337-DTM (+249bps) bill. Similarly, the average yield expanded by 23bps to 6.6% at the OMO secondary market.
Activities at the Treasury bond secondary market was bearish, as the average yield expanded by 11bps to 9.5%. Across the benchmark curve, average yield expanded at short (+27bps) and mid (+7bps) segments following sell-offs of the JAN-2022 (+159bps) and APR-2029 (+17bps), respectively; the average yield was flat at the long end.
At the PMA, the DMO offered instruments worth NGN150.00 billion to investors through three re-openings – 16.288% MAR 2027 (Bid-to-offer: 1.3x; Stop rate: 10.5000%), 12.50% MAR 2035 (Bid-to-offer: 2.2x; Stop rate: 11.5000%) and 9.80% JUL 2045 (Bid-to-offer: 3.2x; Stop rate: 12.0000%). Despite a total subscription of NGN330.48 billion, the DMO eventually allotted instruments worth NGN262.09 billion, resulting in a bid-cover ratio of 1.3x.-With Cordros Research