December 14, 2021/Cordros Report
EQUITIES
Activities in the domestic bourse reversed yesterday’s gain, closing lower as investors sold off GTCO (-3.9%). Thus, the All-Share Index declined by 0.2% to 42,317.52 points. Consequently, the Month-to-Date loss increased to -2.2%, while the Year-to-Date gain moderated to +5.1%.
The total volume traded increased by 17.6% to 270.09 million units, valued at NGN2.30 billion, and exchanged in 3,753 deals. ACCESS was the most traded stock by volume and value at 50.04 million units and NGN497.74 million, respectively.
On sectors, the Banking (-1.1%), Oil and Gas (-1.0%) and Industrial Goods (-0.1%) indices declined, while the Insurance (+0.4%) and Consumer Goods (+0.1%) indices posted gains.
As measured by market breadth, market sentiment was negative (0.8x) as 16 tickers lost relative to 13 gainers. UPDCREIT (-6.7%) and CAVERTON (-4.6%) recorded the most significant losses of the day, while CUSTODIAN (+9.9%) and ROYALEX (+8.6%) topped the gainers’ list.
CURRENCY
The naira depreciated by 0.2% to NGN414.80/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 25bps to 14.3% as funding pressures outweighed inflows from OMO maturities (NGN40.00 billion).
The NTB secondary market remained quiet as the average yield was flat at 4.5%. Similarly, the average yield was unchanged at 5.5% in the OMO segment.
Trading in the Treasury bond secondary market was bullish, as the average yield contracted by 3bps to 11.4%. Across the benchmark curve, the average yield was flat at the mid segment but contracted at the short (-9bps) and long (-1bp) ends following demand for the APR-2023 (-52bps) and JUL-2045 (-9bps) bonds, respectively.
