August 26, 2019/Cordros Report
The Nigerian equities market kicked-started the week on a negative note, as the benchmark index declined by 0.39% to 27,691.85 points, following selloffs of SEPLAT and FO. Consequently, the Month-to-Date and Year-to-Date losses worsened to -0.10% and -11.89% respectively.
Also, the total volume of transactions declined by 47.4% to 158.27 million units, valued at NGN3.34 billion. TRANSCORP was the most traded stock by volume at 31.76 million units, while NESTLE was the most traded by value at NGN552.11 million.
Analyzing sector performances, the Insurance index was the sole gainer, rising by 0.7%. Conversely, the Oil & Gas (-6.8%), Consumer Goods (-0.4%), Banking (-0.2%) and Industrial Goods (-1.0%) indices all closed in the red.
Market sentiment, as measured by market breadth, was negative (0.86x) as 21 tickers recorded losses relative to 18 gainers. On the laggards list, SEPLAT (-10.0%) and FO (-10.00%) recorded the largest declines, while SOVRENINS (-10.0%) and ABCTRANS (-10.0%) recorded the largest gains.
The naira traded flat against the US dollar at NGN360.00/USD in the parallel market, while it appreciated by 0.04% to NGN362.90/USD at the I&E FX window.
MONEY MARKET AND FIXED INCOME
The overnight lending rate declined by 529bps to 13.50%, given the improvement in system liquidity as the market moved from a negative net position to a positive long position (NGN201.18 billion).
Activities in the Treasury bills market were bullish, as the average yield declined by 36bps to 14.81%. Investor demand for the 45DTM (-90bps), 182DTM (-87bps) and 311DTM (-154bps) bills, led to yield contractions across the short (-30bps), mid (-49bps) and long (-30bps) segments, respectively.
Similarly, trading in the Treasury bonds market was also bullish, as the average yield declined by 15bps to 14.28%. Investors demand for FEB-2020 (-61bps), JUL-2030 (-6bps) and JUL-2034 (-47bps) instruments, led to yield contractions at the short (-28bp), mid (-5bps) and long (-13bps) segments, respectively.