May 10, 2022/Cordros Report
EQUITIES
The domestic bourse snapped an 18-day bullish run as late profit-taking activities witnessed in MTNN (-3.6%) undermined the market’s performance. Thus, the All-Share Index declined by 0.2% to 51,805.41 points. Consequently, the Month-to-Date and Year-to-Date gains moderated to +4.4% and +21.3%, respectively.
The total volume of trades declined by 1.8% to 331.52 million units, valued at NGN5.04 billion, and exchanged in 6,689 deals. GTCO was the most traded stock by volume and value at 51.96 million units and NGN1.23 billion, respectively.
Sectoral performance was broadly positive, following gains in the Insurance (+1.0%), Oil and Gas (+1.0%), and Consumer Goods (+0.8%) indices. The Banking (-0.5%) index was the sole loser, while the Industrial Goods index closed flat.
As measured by market breadth, market sentiment was positive (2.5x), as 33 tickers gained relative to 13 losers. OKOMUOIL (+10.0%) and MULTIVERSE (+10.0%) topped the gainers’ list, while NAHCO (-4.1%) and MBENEFIT (-3.9%) recorded the most significant losses of the day.
CURRENCY
The naira appreciated by 0.2% to NGN418.25/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 133bps to 5.0%, following the inflow from OMO maturities (NGN38.08 billion).
Activities in the NTB secondary market were mixed, albeit with a bullish bias, as the average yield pared by 1bp to 3.7%. Across the curve, the average yield was flat at the short and mid segments but contracted at the long (-2bps) end due to demand for the 261DTM (-11bps) bill. Elsewhere, the average yield was flat at 4.1% in the OMO segment.
The Treasury bond secondary market was also mixed, but with bullish bias, as the average yield contracted slightly by 2bps to 11.1%. Across the benchmark curve, the average yield dipped at the short (-2bps) and long (-4bps) ends as investors demanded the JAN-2026 (-11bps) and MAR-2050 (-10bps) bonds, respectively; the average yield closed flat at the mid-segment.
