March 8, 2022/Cordros Report
EQUITIES
Negative sentiments persisted in the local bourse as investors took profit off NESTLE (-2.8%). Consequently, the All-Share Index declined by 0.2% to close at 47,154.35 points. Thus, the Month-to-Date and Year-to-Date returns moderated to -0.5% and +10.4%, respectively.
The total volume of trades increased by 158.6% to 754.93 million units, valued at NGN3.64 billion, and exchanged in 4,330 deals. UNITYBNK was the most traded stock by volume at 525.28 million units, while GTCO was the most traded stock by value at NGN766.26 million.
Performance across sectors under our coverage was negative, as the Insurance (-2.2%), Consumer Goods (-2.2%), Oil & Gas (-0.8%), Industrial Goods (-0.1%), and Banking (-0.1%) indices posted losses.
As measured by market breadth, market sentiment was negative (0.6x), as 27 tickers lost relative to 15 gainers. JAIZBANK (-10.0%) and CONOIL (-10.0%) topped the losers’ list, while NIGERINS (+9.5%) and CHIPLC (+8.5%) recorded the highest gains of the day.
CURRENCY
The naira appreciated by 0.1% to NGN416.00/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 433bps to 5.2%, as the inflow from OMO maturities (NGN106.22 billion) boosted system liquidity.
The Treasury Bills secondary market continued trading with mixed sentiments as the average yield closed flat at 3.4%. Similarly, the average yield at the OMO segment was unchanged at 3.3%.
Trading in the Treasury bond secondary market was mixed, although with a bearish bias, as the average yield expanded by 3bps to 10.4%. Across the benchmark curve, the average yield contracted at the short (-4bps) and mid (-1bp) segments as investors increased their buying interests for the MAR-2024 (-18bps) and FEB-2028 (-5bps) bonds, respectively but expanded at the long (+9bps) end following sell pressures on the APR-2037 (+45bps) bond.
