Positive trading returned to the domestic equities market Tuesday, as bargain buying in DANGCEM (+1.4%) spurred a 0.2% gain in the All-Share Index to 38,482.52 points. Consequently, the Month-to-Date return turned positive to +0.1%, while the Year-to-Date loss moderated to -4.4%.
The total volume traded decreased by 42.9% to 156.91 million units, valued at NGN1.33 billion, and exchanged in 3,273 deals. FBNH was the most traded stock by volume at 12.22 million units, while SEPLAT was the most traded stock by value at NGN319.97 million.
Analysing by sectors, the Insurance (+0.8%) and Industrial Goods (+0.5%) indices recorded gains while the Consumer Goods (-0.2%) and Oil & Gas (-0.1%) indices declined. The Banking index closed flat.
As measured by market breadth, market sentiment was negative (0.8x), as 19 tickers lost, relative to 15 gainers. CWG (-9.7%) and IKEJAHOTEL (-9.1%) recorded the most significant losses of the day, while UPL (+9.4%) and REGALINS (+8.2%) topped the gainers’ list.
CURRENCY
The naira appreciated at the I&E window by 0.2% to NGN411.06/USD but stayed flat at NGN498.00/USD in the parallel market.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 216bps to 14.8%, in the absence of any significant inflows to the system.
The NTB secondary market was mixed, as the average yield stayed flat at 6.1%. Elsewhere, the average yield at the OMO segment expanded by 7bps to 9.8%.
Trading in the Treasury bond secondary market was bullish, as the average yield contracted by 6bps to 12.3%. Across the benchmark curve, the average yield was flat at the short end, but contracted at the mid (-16bps) and long (-5bps) segments following demand for the JUL-2030 (-27bps) and JUL-2034 (-35bps) bonds, respectively. [Cordros Capital]
