April 25, 2022/Cordros Report
EQUITIES
The local bourse opened the week on a bullish note as investors’ positive reaction to NB’s Q1-22 earnings release drove a 0.2% increase in the All-Share Index to 48,558.91 points. Consequently, the Month-to-Date and Year-to-Date gains increased to +3.4% and +13.7%, respectively.
The total volume traded declined by 4.0% to 328.39 million units, valued at NGN4.04 billion, and exchanged in 5,711 deals. ZENITHBANK was the most traded stock by volume and value at 35.84 million units and NGN912.15 million, respectively.
Sectoral performance was broadly positive, as four of our coverage indices – Consumer Goods (+2.5%), Oil & Gas (+1.4%), Insurance (+0.4%) and Banking (+0.3%) – printed gains. The Industrial Goods (-1.1%) index was the sole loser of the day.
As measured by market breadth, market sentiment was positive (3.0x) as 42 tickers gained relative to 14 losers. UPDCREIT (+10.0%) and IKEJAHOTEL (+9.9%) recorded the most significant gains of the day, while UNITYBNK (-6.0%) and ACADEMY (-6.0%) topped the losers’ list.
CURRENCY
The naira appreciated by 0.3% to NGN417.30/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 558bps to 11.3% in the absence of any significant inflows in the system.
Proceeding in the Treasury bills secondary market was quiet, with market participants anticipating Wednesday’s PMA. Thus, the average yield stayed flat at 3.8%. Elsewhere, the average yield expanded by 5bps to 4.1% in the OMO segment.
Similarly, there was quiet activity in the Treasury bonds secondary market as investors switched their focus to the April bond auction in anticipation of higher stop rates. Consequently, the average yield was unchanged at 11.0%.
