March 10, 2022/Cordros Report
EQUITIES
Bullish sentiments persisted in the domestic equities market as interests in top telecommunication player – MTNN (+1.0%) led the All-Share Index to close 0.2% higher to 47,363.98 points. Accordingly, the Month-to-Date loss moderated to -0.1%, while the Year-to-Date gain increased to +10.9%.
The total volume traded decreased by 22.2% to 261.56 million units, valued at NGN4.47 billion, and exchanged in 4,672 deals. CUTIX was the most traded stock by volume at 31.79 million units, while MTNN was the most traded stock by value at NGN1.83 billion.
On sectors, the Oil & Gas (+1.2%), Insurance (+0.9%), and Banking (+0.4%) indices posted gains, while the Consumer Goods (-0.6%) index declined. The Industrial Goods index closed flat.
As measured by market breadth, market sentiment was positive (1.1x) as 21 tickers gained relative to 19 losers. RTBRISCOE (+9.8%) and UACN (+9.8%) topped the gainers’ list, while ROYALEX (-9.5%) and ABCTRANS (-8.6%) 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 expanded by 8bps to 4.8%, following outflows for net NTB issuances (NGN142.53 billion).
Trading in the NTB secondary market was mixed albeit with a bullish bias, as the average yield pared by 2bps to 3.4%. Across the benchmark curve, the average yield was flat at the short and long ends but contracted at the mid (-7bps) segment following market participants’ demand for the 168DTM (-41bps) bill. At yesterday’s NTB auction, the CBN offered NGN94.00 billion for sale with a total subscription of NGN482.90 billion. Accordingly, the CBN allotted NGN2.32 billion of the 91-day, NGN21.29 billion of the 182-day and NGN212.92 billion of the 364-day bills – at respective stop rates of 1.75% (previously 2.24%), 3.28% (previously 3.30%), and 4.10% (previously 4.35%). Elsewhere, the average yield was flat at 3.9% at the OMO segment.
The Treasury bond secondary market closed on a slightly bearish note, as the average yield expanded by 4bps to 10.5%. Across the benchmark curve, the average yield expanded at the short (+1bp) end as investors sold off the MAR-2025 (+51bps) bond but was unchanged at the mid and long segments.
