January 13, 2022/Cordros Report
EQUITIES
The local bourse traded with mixed sentiments as the sell-offs of CUSTODIAN (-9.5%) and STANBIC (-0.8%) offset investors’ interest in INTBREW (+4.0%). Precisely, the All-Share Index settled 1bp lower to close at 44,604.74 points. Consequently, the Year-to-Date return was unchanged at +4.4%.
The total volume traded increased by 20.8% to 321.75 million units, valued at NGN3.66 billion, and exchanged in 4,565 deals. TRANSCORP was the most traded stock by volume at 104.58 million units, while SEPLAT was the most traded stock by value at NGN920.64 million.
Analysing by sectors, the Consumer Goods (+0.2%) and Banking (+0.1%) indices recorded gains, while the Insurance (-0.9%) index declined. The Industrial Goods and Oil & Gas indices closed flat.
As measured by market breadth, market sentiment was positive (1.1x) as 14 tickers gained relative to 13 losers. TRANSCORP (+9.7%) and CHIPLC (+7.9%) topped the gainers’ list, while NEM (-10.0%) and CUSTODIAN (-9.5%) recorded the highest losses of the day.
CURRENCY
The naira depreciated by 0.1% to NGN416.50/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 150bps to 14.3%, in the absence of any significant funding pressures on the system.
The NTB secondary market continued trading with mixed sentiments, as the average yield was unchanged at 4.4%. Similarly, the average yield was flat at 5.6% at the OMO segment.
Trading in the Treasury bond secondary market was bullish, as the average yield declined by 3bps to 11.4%. Across the benchmark curve, the average yield contracted at the short (-1bp), mid (-3bps) and long (-6bps) segments following increased demand for the APR-2023 (-1bp), MAR-2027 (-6bps) and MAR-2035 (-41bps) bonds, respectively.
