March 31, 2022/Cordros Report
EQUITIES
The domestic bourse extended yesterday’s positive trading, as the All-Share Index advanced by 0.1% to 46,965.48 points. Today’s performance was underpinned by sustained interest in MTNN (+1.9%). Consequently, the Month-to-Date and Year-to-Date returns settled at -0.9% and +10.0%, respectively.
The total volume of trades increased by 27.2% to 256.02 million units, valued at NGN3.66 billion, and exchanged in 4,227 deals. FIDELITYBK was the most traded stock by volume at 77.34 million units, while AIRTELAFRI was the most traded stock by value at NGN1.14 billion.
Analysing by sectors, the Consumer Goods (-1.6%), and Banking (-1.3%) indices printed losses, while the Insurance (+0.5%) index was the sole gainer of the day. The Industrial Goods and Oil and Gas indices closed flat.
As measured by market breadth, market sentiment was negative (0.5x), as 29 tickers lost relative to 14 gainers. NNFM (-10.0%) and NEIMETH (-9.6%) recorded the most significant losses of the day, while MEYER (+10.0%) and MANSARD (+9.7%) topped the gainers’ list.
CURRENCY
The naira appreciated by 0.2% to NGN416.17/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 33bps to 5.0%, despite debits for net NTB issuances (NGN30.90 billion).
Activities in the Treasury bills secondary market were quiet, as the average yield closed flat at 3.2%. At yesterday’s NTB auction, the CBN offered NGN143.29 billion for sale with a total subscription of NGN247.61 billion. Accordingly, the CBN allotted NGN13.88 billion for the 91-day, NGN20.00 billion for the 182-day, and NGN139.96 billion for the 364-day bills – at respective stop rates of 1.75% (previously 1.74%), 3.00% (unchanged), and 4.45% (previously 4.00%). Similarly, the average yield stayed flat at 3.6% in the OMO segment.
The Treasury bond secondary market closed on a bullish note, as the average yield contracted by 4bps to 10.6%. Across the benchmark curve, the average yield was flat at the short end; but contracted at the mid (-5bps) and long (-7bps) segments as investors demanded the JUL-2030 (-7bps) and MAR-2036 (-18bps) bonds, respectively.
