February 8, 2022/Cordros Report
EQUITIES
The domestic bourse extended yesterday’s loss as investors sold off BUAFOODS (-4.0%) and MTNN (-1.0%). Thus, the All-Share Index declined by 0.3% to 47,057.24 points. Consequently, the Month-to-Date and Year-to-Date returns moderated to +0.9% and +10.2%, respectively.
The total volume of trades declined by 16.6% to 238.22 million units, valued at NGN5.09 billion, and exchanged in 4,826 deals. GTCO remained the most traded stock by volume and value at 32.35 million units and NGN887.64 million, respectively.
On sectors, the Insurance (+2.4%) and Oil &Gas (+0.9%) indices posted gains, while the Banking (-0.2%) index declined. The Consumer Goods and Industrial Goods indices closed flat.
As measured by market breadth, market sentiment was negative (0.8x), as 20 tickers declined, relative to 16 gainers. COURTVILLE (-7.3%) and UPL (-5.4%) topped the losers’ list, while PRESCO (+10.0%) and NEM (+10.0%) recorded the most significant gains of the day.
CURRENCY
The naira was flat at NGN416.67/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 700bps to 5.3%, following inflows from OMO maturities (NGN139.14 billion).
The Treasury bills secondary market traded with bullish sentiments, as the average yield declined by 7bps to 4.3%. Across the benchmark curve, the average yield was unchanged at the short end but contracted at the mid (-1bp) and long (-15bps) segments following demand for the 176DTM (-6bps) and 190DTM (-87bps) bills, respectively. Elsewhere, the average yield at the OMO segment remained flat at 5.5%.
The Treasury bond secondary market traded quietly, as the average yield was unchanged at 11.5%. Across the benchmark curve, the average yield pared at the short (-1bp) end as investors demanded the APR-2023 (-1bp) bond but was unchanged at the mid and long segments.
