January 20, 2022/Cordros Report
EQUITIES
Bullish sentiments persisted in the domestic equities market for the third consecutive session, following buying interests in top cement player, DANGCEM (+5.5%). Thus, the All-Share Index index inched higher by 1.0% to 45,890.52 points. Accordingly, the Year-to-Date return increased to +7.4%.
The total volume traded increased significantly by 245.3% to 873.49 million units, valued at NGN31.54 billion, and exchanged in 4,342 deals. DANGCEM was the most traded stock by volume and value at 101.92 million units and NGN28.78 billion, respectively.
Performance across sectors was mixed following gains in the Industrial Goods (+2.7%), Insurance (+0.5%), and Banking (+0.4%) indices and losses in the Consumer Goods (-0.2%) and Oil & Gas (-0.1%) indices.
As measured by market breadth, market sentiment was positive (3.0x) as 27 tickers gained relative to 9 losers. NNFM (+9.9%) and LEARNAFRCA (+9.3%) recorded the most significant gains of the day, while DANGSUGAR (-2.7%) and STANBIC (-2.7%) topped the losers’ list.
CURRENCY
The naira was flat at NGN416.33/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate settled lower by 200bps to 11.5%, in the absence of any significant funding pressures on the system.
Trading in the NTB secondary market was muted, with the average yield closing flat at 4.4%. Elsewhere, the average yield at the OMO segment expanded by 3bps to 5.8%.
The Treasury bond secondary market was mixed, as the average yield was unchanged at 11.2%. Across the benchmark curve, the average yield pared at the short (-1bp) end due to the demand for the APR-2023 (-3bps) bond but expanded at the long (+1bp) end as investors sold off on the MAR-2050 (+5bps) bond; the average yield was flat at the mid segment.
