December 23, 2021/Cordros Report
EQUITIES
The domestic equities market remained bearish, as continued profit-taking activities on MTNN (-0.4%) undermined the market’s performance. Precisely, the All-Share Index declined by 3bps to 42,230.48 points. Accordingly, Month-to-Date and Year-to-Date returns printed -2.4% and +4.9%, respectively.
The total volume of trades increased by 5.8% to 211.09 million units, valued at NGN2.46 billion, and exchanged in 2,815 deals. UACN was the most traded stock by volume at 64.95 million units and value at NGN617.02 million, respectively.
Sectoral performance was broadly positive as the Oil & Gas (+1.1%), Banking (+0.5%), Insurance (+0.4%) and Industrial Goods (+0.1%) indices advanced. The Consumer Goods index was flat.
As measured by market breadth, market sentiment was positive (1.3x), as 13 tickers gained, relative to 10 losers. UBN (+9.8%) and ROYALEX (+7.1%) recorded the most significant gains of the day, while JBERGER (-9.9%) and SOVRENINS (-4.0%) topped the losers’ list.
CURRENCY
The naira appreciated by 0.1% to NGN414.73/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 645bps to 8.0% in the absence of any significant funding pressure on the system.
Trading in the NTB secondary market ended on a mixed note, as the average yield was flat at 4.5%. Similarly, the average yield at the OMO segment was unchanged at 5.4%.
The Treasury bond secondary market was mixed with a bearish tilt, as the average yield expanded slightly by 1bp to 11.4%. Across the benchmark curve, the average yield was flat at the short and mid segments but increased at the long (+2bps) end following sell-off of the MAR-2050 (+17bps) bond.
