February 10, 2022/Cordros Report
EQUITIES
The domestic bourse sustained yesterday’s positive trading, as the All-Share Index advanced by 0.3% to 47,286.34 points. Today’s performance was supported by investors’ interests in FBNH (+5.4%), GUINNESS (+10.0%) and ZENITHBANK (+1.1%). Consequently, the Month-to-Date and Year-to-Date gains increased to +1.4% and +10.7%, respectively.
The total volume of trades decreased by 33.4% to 198.12 million units, valued at NGN3.41 billion, and exchanged in 4,294 deals. CHAMS was the most traded stock by volume at 16.74 million units, while SEPLAT was the most traded stock by value at NGN713.65 million.
Performance across sectors was broadly positive as the Oil & Gas (+1.8%), Consumer Goods (+1.0%), Banking (+0.6%), and Insurance (+0.3%) indices advanced. The Industrial Goods index closed flat.
As measured by market breadth, market sentiment was positive (3.2x), as 29 tickers gained relative to 9 losers. GUINNESS (+10.0%) and TOTAL (+9.9%) topped the gainers’ list, while VERITASKAP (-4.4%) and UBN (-3.2%) recorded the most significant losses of the day.
CURRENCY
The naira depreciated by 0.2% to NGN416.67/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 133bps to 1.5% in the absence of any significant funding pressure on the system.
The Treasury bills secondary market traded with mixed sentiments, as the average yield was unchanged at 4.4%. Similarly, the average yield closed flat at 5.6% in the OMO segment.
Trading in the Treasury bond secondary market was also mixed, albeit with a bullish bias, as the average yield pared by 1bp to 11.5%. Across the benchmark curve, the average yield contracted at the short (-8bps) end following increased demand for the MAR-2025 (-14bps) bond but expanded at the mid (+1bp) and long (+2bps) segments as investors sold off the JUL-2030 (+3bps) and JUL-2034 (+13bps) bonds, respectively.
