February 16, 2022/Cordros Report
EQUITIES
The domestic bourse traded with positive sentiments as foreign investors’ interest in AIRTELAFRI (+0.8%) led the All-Share Index to close 0.1% higher at 47,109.25 points. Accordingly, the Month-to-Date and Year-to-Date returns increased to +1.0% and +10.3%, respectively.
The total volume of trades increased by 16.1% to 318.25 million units, valued at NGN8.27 billion, and exchanged in 4,868 deals. ACCESS was the most traded stock by volume at 47.88 million units, while MTNN was the most traded stock by value at NGN4.34 billion.
Performance across sectors was broadly negative, as the Industrial Goods (-0.3%), Banking (-0.2%), and Consumer Goods (-0.1%) indices declined, while the Insurance and Oil & Gas indices closed flat.
As measured by market breadth, market sentiment was negative (0.6x) as 28 tickers lost relative to 18 gainers. REGALINS (-5.1%) and CILEASING (-4.8%) topped the losers’ list while LEARNAFRCA (+9.9%) and SCOA (+9.6%) recorded the most significant gains of the day.
CURRENCY
The naira depreciated by 0.1% at NGN416.50/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate declined by 64bps to 1.3% in the absence of any significant funding pressure on the system.
Trading in the NTB secondary market remained quiet as the average yield was unchanged at 4.1%. Elsewhere, the average yield was declined by 15bps to 5.3% at the OMO segment.
The Treasury bond secondary market was ended on a mixed note, although with a bullish tilt as the average yield pared by 2bps to 11.4%. Across the benchmark curve, the average yield was unchanged at the short end but contracted at the mid (-1bp) and long (-4bps) segments following demand for the JUL-2030 (-4bps) and JUL-2034 (-16bps) bonds, respectively. At this month’s bond auction, the DMO offered instruments worth NGN150.00 billion to investors through re-openings of the 12.50% FGN JAN 2026 (Bid-to-offer: 4.3x; Stop rate: 10.95%, previously 11.50%) and 13.00% FGN JAN 2042 (Bid-to-offer: 3.1x; Stop rate: 13.00%, unchanged) bonds. As anticipated, demand was higher (subscription: NGN557.72 billion; bid-to-offer: 3.7x) than January’s auction (Subscription: NGN325.24 billion; Bid-to-offer: 2.2x). The DMO eventually over-allotted instruments worth NGN297.39 billion, resulting in a bid-to-cover ratio of 1.9x.
