January 6, 2020/Cordros Report
Equities
The bulls continue to dominate the domestic equities market, as the benchmark index rose by 1.38% to 27339.68 points – the highest daily return since November 14, 2019 – following investors’ interest in DANGCEM and GUARANTY stocks. Consequently, the Month-to-Date and Year-to-Date gains increase to +1.38% and -1.85%, respectively.
The total volume of trades decreased by 14.52% to 520.43million units, valued at NGN5.35billion, and exchanged in 5,784 deals. ZENITHBANK was the most traded stock by volume and value at 97.11million units and NGN1.91billion, respectively.
All sectors indices closed positive, with the Banking (+3.90%) and Industrial Goods (+1.60%) indices leading the pack, closely followed by the Insurance (+0.82%) Consumer Goods (+0.47%), and Oil & Gas (+0.42%) indices, respectively.
Market sentiment, as measured by market breadth, was positive (2.5x), as 30 tickers recorded gains relative to 12 losers. FCMB (+10.00%) and CORNERST (+9.43%) topped the gainer’s list, while PZ (-9.73%) and NIGERINS (-9.09%) topped the laggards’ list.
Currency
In today’s trading, the naira appreciated by 0.11% against the US dollar to NGN364.57/USD at the I&E FX window but was flat at NGN362.00/USD at the parallel market.
Money market & fixed income
The overnight lending rate pared marginally by 14bps to 3.07%, as system liquidity– estimated at NGN532 million – was sufficient to offset the funding for CBN’s wholesale, Invisibles and SMEs FX auctions.
Activities in the NTB market were bullish, as the average yield moderated marginally by 4bps to settle at 4.53%. Yield contracted mid (-6bps) and long (+6bps) segments of the curve, following buying interests in the 178DTM (-25bps) and 206DTM (-58bps) instruments. The short end of the curve was flat. Elsewhere, average yield pared by 15bps to close at 12.96% at the OMO bills secondary market
Elsewhere, Proceedings in the bond market sustained its bullish run, as the average yield dipped by 5bps to 10.49%. Yield contracted across the mid (-15bps) and long (-5bps) segments of the curve, driven by investors’ interests in FEB-2028 (-25bps) and JUL-2030 (-18bps) bond, respectively. On the flip side, sell-offs on MAR-2024 (+17bps) bond, led to yield expansion at the short (+2bps) end of the curve.
