January 18, 2022/Cordros Report
EQUITIES
The local bourse reversed yesterday’s loss, closing higher on bargain buying in BUACEMENT (+2.0%) and BUAFOODS (+4.2%) stocks. Thus, the All-Share Index advanced by 0.6% to 44,655.89 points. Accordingly, the Year-to-Date return increased to +4.5%.
The total volume traded increased by 9.8% to 235.23 million units, valued at NGN1.92 billion, and exchanged in 4,151 deals. TRANSCORP was the most traded stock by volume at 38.11 million units, while GTCO was the most traded stock by value at NGN476.49 million.
Performance across sectors was broadly positive as four out of our five coverage indices – Banking (+1.0%), Industrial Goods (+0.8%), Consumer Goods (+0.7%), and Oil & Gas (+0.3%) indices – closed in the green. The Insurance (-1.6%) index was the sole loser.
As measured by market breadth, market sentiment was positive (2.3x) as 25 tickers gained relative to 11 losers. COURTVILLE (+8.6%) and FTNCOCOA (+8.3%) topped the gainers’ list, while NEM (-8.3%) and REGALINS (-4.3%) recorded the most significant losses of the day.
CURRENCY
The naira was flat at NGN416.33/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 225bps to 13.0%, following inflows from OMO maturities (NGN128.18 billion).
Trading in the NTB secondary market remained mixed, as the average yield was unchanged at 4.4%. Elsewhere, the average yield expanded by 10bps to 5.7% in the OMO segment.
Proceedings at the Treasury bond secondary market were bullish, as the average yield expanded by 15bps to 11.2%. Across the benchmark curve, the average yield contracted at the short (-46bps) and mid (-1bp) segments as investors demanded the JAN-2022 (-238bps) and APR-2049 (-8bps) bonds, respectively but closed flat at the long end.
