March 22, 2022/Cordros Report
EQUITIES
The Nigerian equities market dipped further in the bear territory as investors sold off NESTLE (-2.8%) stocks. Thus, the All-Share Index declined by 0.2% to close at 47,156.56 points. Accordingly, the Month-to-Date and Year-to-Date returns moderated to -0.5% and +10.4%, respectively.
The total volume of trades increased by 42.1% to 303.48 million units, valued at NGN3.90 billion, and exchanged in 4,616 deals. ACCESS was the most traded stock by volume at 44.15 million units, while ZENITHBANK was the most traded stock by value at NGN758.01 million.
Performance across sectors under our coverage was negative, as the Consumer Goods (-1.6%), Insurance (-1.4%), Oil & Gas (-1.0%), Banking (-0.4%) and Industrial Goods (-0.1%) indices printed losses.
As measured by market breadth, market sentiment was negative (0.6x), as 27 tickers lost relative to 16 gainers. CHAMPION (-8.8%) and OANDO (-6.8%) topped the losers’ list, while NPFMCRFBK (+9.5%) and FCMB (+7.9%) recorded the most significant gains of the day.
CURRENCY
The naira depreciated by 0.2% to NGN417.00/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 200bps to 11.7%, despite the inflow from OMO maturities (NGN42.00 billion).
The Treasury Bill secondary market traded with bullish sentiments as the average yield contracted by 8bps to 3.2%. Across the curve, the average yield was flat at the short end, expanded at the mid (+17bps) segment as market participants sold off the 142DTM (+16bps) bill but contracted at the long (-30bps) end following increased demand for the 247DTM (-79bps) bill. Elsewhere, the average yield was unchanged at 3.6% in the OMO segment.
Proceedings at the Treasury bond secondary market were mixed, albeit with a bearish bias, as the average yield expanded slightly by 2bps to 10.5%. Across the benchmark curve, the average yield expanded at the short (+4bps) and long (+1bp) ends following sell pressures on the JAN-2026 (+11bps) and APR-2037 (+9bps) bonds, respectively. Conversely, the average yield was unchanged at the mid segment.
