MON, SEPT 30 2019-theG&BJournal-Ahead of the Independence Day holiday, the NSE All Share Index dipped by 0.16% to 27,630.56 points, following investors’ selloffs of large-caps MTNN, ETI, and UNILEVER. As result, the market barely closed the month in green (+0.38% m/m), its first monthly gain since February 2019, while the Year-to-Date loss worsened to 12.09%.
The total volume of trades decreased by 5.88% to 176.3 million units, valued at NGN2.29billion, and exchanged in 2748 deals. GUARANTY was the most traded stock by volume and value at NGN58.49 million units and NGN1.63 billion respectively.
Performance across all sectors were positive, as the Insurance (+1.85%), Banking (+1.56%), Consumer Goods (+1.26%), Industrial Goods (+0.91%) and Oil & Gas (+0.35%) indices recorded gains.
Market sentiment, as measured by market breadth, was positive (1.06x) as 18 tickers recorded gains relative to 16 losers. CAP (+9.98%) and CONTINSURE (+9.52%) topped the gainers’ list, while JOHNHOLT (-9.84%) and ETI (-9.84%) recorded the largest declines.
The naira traded flat against the US dollar at NGN360.00/USD in the parallel market but depreciated by 0.05% to NGN362.23/USD at the I&E FX window.
Money market & fixed income
The overnight lending rate declined by 50bps to 8.79% amidst buoyant system liquidity.
Activities in the Treasury bills market were mixed as the average yield was unchanged at 13.28%. Investors’ demand for the 185DTM (-29bps) and 332DTM (-30bps) bills led to yield contraction at the mid (-8bps) and long (-1bps) segments, respectively. On the flip side, a sell-off of the 10DTM (+47bps) bill led to yield expansion at the short (+9bps) end of the curve.
Trading in the Treasury bonds market was mixed, albeit with a bullish tilt, as the average yield contracted marginally by 2bps to 14.24%. Investors’ demand for the JAN-2026 (-19ps) bond led to yield contraction at the mid (-11bps) segment of the curve. Conversely, sell-offs of the APR-2023 (+13bps) and JUL-2034 (+11bps) bonds led to yield expansion at the short (+2bps) and long (+6bps) ends of the curve.-Courtesy of Cordros Research