March 2, 2022/Cordros Report
EQUITIES
The domestic bourse reversed yesterday’s gains and traded negatively as late profit-taking activities witnessed in WAPCO (-7.7%) undermined the market’s performance. Thus, the All-Share Index declined by 0.3% to 47,360.79 points. Consequently, the Month-to-Date and Year-to-Date returns moderated to -0.1% and +10.9%, respectively.
The total volume of trades declined by 24.5% to 279.95 million units, valued at NGN4.16 billion, and exchanged in 5,620 deals. TRANSCORP was the most traded stock by volume at 29.21 million units, while SEPLAT was the most traded stock by value at NGN826.52 million.
Analysing by sectors, the Banking (-1.3%), Consumer Goods (-1.3%), and Industrial Goods (-0.6%) indices printed losses, while the Oil and Gas (+5.1%) and Insurance (+1.0%) indices advanced.
As measured by market breadth, market sentiment was negative (0.5x) as 32 tickers lost relative to 15 gainers. NIGERINS (-10.0%) and INTBREW (-9.7%) topped the losers’ list while ROYALEX (+10.0%) and SEPLAT (+9.3%) recorded the highest gains of the day.
CURRENCY
The naira was flat at NGN416.50/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 733bps to 3.0% in the absence of any significant funding pressure on the system.
Trading in the NTB secondary market was bullish, as the average yield contracted by 15bps to 3.4%. Across the curve, the average yield was unchanged at the short and mid segments but closed lower at the long (-37bps) end, following buying interests on the 239DTM (-63bps) bill. Elsewhere, the average yield expanded by 32bps to 3.3% in the OMO segment.
Bullish sentiments dominated the Treasury bond secondary market as the average yield declined by 6bps to 10.8%. Across the benchmark curve, the average yield contracted at the short (-5bps) and mid (-17bps) segments due to demand for the JAN-2026 (-17bps) and MAR-2027 (-41bps) bonds, respectively. Conversely, the average yield was flat at the long end.
