February 21, 2022/Cordros Report
EQUITIES
The domestic bourse kicked off the week on a positive note supported by investors’ demand for INTBREW (+6.7%) and GUINNESS (+5.7%) stocks. Thus, the All-Share Index advanced by 0.2% to 47,233.91 points. Accordingly, the Month-to-Date and Year-to-Date returns increased to +1.3% and +10.6%, respectively.
The total volume traded declined by 0.8% to 421.46 million units, valued at NGN4.22 billion, and exchanged in 5,961 deals. TRANSCORP was the most traded stock by volume at 99.26 million units, while ZENITHBANK was the most traded stock by value at NGN1.25 billion.
Performance across sectors was broadly positive, as the Banking (+0.7%), Consumer Goods (+0.4%), and Insurance (+0.2%) indices posted gains while the Industrial Goods and the Oil & Gas indices closed flat.
As measured by market breadth, market sentiment was positive (2.2x) as 31 tickers gained relative to 14 losers. RTBRISCOE (+10.0%) and UCAP (+10.0%) topped the gainers’ list while MULTIVERSE (-8.0%) and MBENEFIT (-7.1%) recorded the most significant losses 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 133bps to 12.7%, in the absence of any significant funding pressures on the system.
The Treasury Bill secondary market traded in a lull, as the average yield closed flat at 4.2%. Similarly, the average yield was flat at 5.3% in the OMO segment.
Trading in the Treasury bond secondary market was bullish, as the average yield declined by 6bps to 11.1%. Across the benchmark curve, the average yield contracted at the short (-12bps), mid (-3bps) and long (-3bps) segments following buying interests in the MAR-2025 (-43bps), MAR-2027 (-11bps), and MAR-2036 (-16bps) bonds, respectively.
