February 9, 2022/Cordros Report
EQUITIES
Bullish sentiments returned to the Nigerian equities market, as investors’ interest in UBN (+6.8%) and ACCESS (+2.9%) ensured the first gain of the week. Thus, the All-Share Index advanced by 0.2% to 47,157.23 points. Accordingly, the Month-to-Date and Year-to-Date returns increased to +1.1% and +10.4%, respectively.
The total volume traded increased by 24.8% to 297.25 million units, valued at NGN4.69billion, and exchanged in 4,661 deals. ACCESS was the most traded stock by volume at 48.08 million units, while PRESCO was the most traded stock by value at NGN910.71 million.
Sectoral performance was broadly positive as the Banking (+1.7%), Consumer Goods (+0.7%), Insurance (+0.2%) and the Oil & Gas (+0.1%) indices gained, while the Industrial Goods index closed flat.
As measured by market breadth, market sentiment was positive (1.9x) as 25 tickers gained relative to 13 losers. RTBRISCOE (+10.0%) and SCOA (+9.5%) recorded the most significant gains of the day, while MULTIVERSE (-4.8%) and SOVRENINS (-4.2%) topped the losers’ list.
CURRENCY
The naira appreciated by 0.2% to NGN416.00/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate declined by 242bps to 2.8% in the absence of any significant funding pressure on the system.
Trading in the NTB secondary market remained bullish, as the average yield contracted by 7bps to 4.2%. Across the NTB curve, the average yield contracted at the short (-24bps) end following investors’ demand for the 50DTM (-141bps) bill; but closed flat at the mid and long segments. At the NTB auction, the CBN offered NGN98.01 billion for sale with a total subscription of NGN446.31 billion. Accordingly, the CBN allotted NGN1.91 billion for the 91-day, NGN1.82 billion for the 182-day and NGN211.23 billion for the 364-day bills – at respective stop rates of 2.48%, (previously 2.48%), 3.30% (previously 3.30%), and 5.20% (previously 5.40%). Elsewhere, the average yield expanded by 16bps to 5.6% in the OMO segment.
The Treasury bond secondary market traded quietly, as the average yield was unchanged at 11.5%. Across the benchmark curve, the average yield expanded slightly at the short (+1bp) end following profit-taking on the JAN-2026 (+5bps) bond but contracted at the long (-1bp) end due to the demand for the MAR-2036 (-4bps) bond. Conversely, the average yield remained flat at the mid segment.
