Nigerian equities market traded with bullish sentiments, as the ASI snapped a three-day sell-off on bargain buying in BUACEMENT (+2.1%) and ZENITHBANK (+1.3%). Specifically, the benchmark index inched higher by 0.4% to 37,954.35 points. Accordingly, Month-to-Date and Year-to-Date losses moderated to -1.3% and -5.8%, respectively.
The total volume of trades decreased by 19.7% to 167.41 million units, valued at NGN1.83 billion, and exchanged in 3,256 deals. ZENITHBANK was the most traded stock by volume and value at 13.90 million units and NGN330.12 million, respectively.
Sectoral performance was broadly positive, as gains in the Industrial Goods (+0.9%), Banking (+0.6%), Oil & Gas (+0.3%) and Consumer Goods (+0.2%) indices reflected the overall market performance. On the other hand, the Insurance (-0.3%) index declined.
As measured by market breadth, market sentiment was positive (1.4x), as 18 tickers gained relative to 13 losers. PORTPAINT (+10.0%) and MBENEFIT (+10.0%) recorded the most significant gains of the day, while AIICO (-7.4%) and CHAMS (-4.8%) topped the losers’ list.
CURRENCY
The naira stayed flat at NGN411.67/USD and NGN500.00/USD at the I&E window and the parallel market, respectively.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 175bps to 19.3% in the absence of significant funding pressures on the system.
Trading in the NTB secondary market was mixed, with a bearish bias, as the average yield expanded slightly by 1bp to 6.4%. Across the benchmark curve, the average yield expanded at the short (+2bps) end due to sell-off of the 36DTM (+13bps). Conversely, the mid and long segment closed flat. Similarly, the OMO segment’s average yield expanded by 8bps to 9.7%.
The Treasury bond secondary market turned bearish, as the average yield expanded by 2bps to 11.9%. Across the benchmark curve, the average yield expanded at the short (+5bps) and long (+2bps) ends due to sell-offs of the JUL-2021 (+17bps) and MAR-2050 (+23bps) bonds, respectively. On the other hand, the average yield pared at the mid (-1bps) segment due to demand for the MAR-2027 (-3bps) bond.(Compiled by Cordros Capital)
