MON 08 FEB, 2021-theGBJournal- Nigerian equities opened the week in red, as a sell-down in GUARANTY (-8.8%) extended last week’s bearish trading for the seventh consecutive session, and pushed the All-Share Index lower by 0.4% to 41,564.31 points. Consequently, Month-to-Date loss increased to -2.0%, while the Year-to-Date gain moderated to +3.2%.
The total volume of trades declined by 29.4% to 340.28 million units, valued at NGN2.64 billion, and exchanged in 5,251 deals. UBN was the most traded stock by volume and value at 78.81 million units and NGN457.06 million, respectively.
Sectoral performance was broadly negative, following declines across the Banking (-2.7%), Insurance (-0.8%), and Consumer Goods (-0.3%) indices. The Industrial Goods (+0.1%) index was the lone gainer, while the Oil & Gas index closed flat.
Market sentiment, as measured by market breadth, was positive (1.3x), as 20 tickers gained, relative to 16 losers. UPDCREIT (+9.1%) and MULTIVERSE (+8.3%) topped the gainers’ list, while CHAMPION (-9.8%) and PZ (-9.7%) recorded the largest losses of the day.
The naira weakened by 0.6% to NGN398.50/USD at the I&E window but was flat at NGN480.00/USD at the parallel market.
Money Market & Fixed Income
The overnight lending rate declined by 375bps to 14.3%, in the absence of any significant outflows from the system.
The NTB secondary market was mixed, as average yield was flat at 1.0%. Elsewhere, average yield at the OMO segment expanded by 353bps to 5.5%, as the market adjusted to the stop rates from last week’s auction.
The Treasury bonds secondary market was bearish, as average yield expanded by 32bps to 8.2%. Across the curve, average yield expanded at the short (+26bps), mid (+72bps) and long (+14bps) segments, due to sell-offs of the JAN-2026 (+91bps), APR-2029 (+159bps) and JUL-2034 (+42bps) bonds, respectively.-With Cordros Research.