December 22, 2021/Cordros Report

EQUITIES

Trading in the local bourse was positive for most of the day, however, late sell-offs of MTNN (-1.3%) ensured the market closed lower. Precisely, the All-Share Index declined by 0.3% to 42,244.22 points. Consequently, the Month-to-Date loss increased to -2.3%, while the Year-to-Date return moderated to +4.9%.

The total volume traded decreased by 18.8% to 224.03 million units, valued at NGN2.66 billion, and exchanged in 2,677 deals. UACN was the most traded stock by volume and value at 77.37 million units and NGN696.47 million, respectively.

Across sectors, the Banking (-1.0%), Oil & Gas (-0.8%), and Industrial Goods (-0.2%) indices declined while the Consumer Goods (+0.6%) and Insurance (+0.6%) indices posted gains.

As measured by market breadth, market sentiment was positive (1.1x) as 15 tickers gained relative to 14 losers. CUTIX (+10.0%) and MAYBAKER (+10.0%) topped the gainers’ list while ROYALEX (-6.7%) and LASACO (-6.4%) recorded the most significant losses of the day.

CURRENCY

The naira was flat at NGN415.10/USD at the I&E window.

MONEY MARKET & FIXED INCOME

The overnight lending rate expanded by 425bps to 14.3% in the absence of any significant funding pressures on the system.

The NTB secondary market was mixed with bullish bias as the average yield contracted slightly by 2bps to 4.5%. Across the curve, the average yield was unchanged at the short and mid segments but contracted at the long (-5bps) end following demand for the 337DTM (-39bps) bill.  Similarly, the average yield pared by 1bp to 5.4% in the OMO segment.

The Treasury bond secondary market traded quietly as the average yield stayed flat at 11.4%.