May 9, 2022/Cordros Report
EQUITIES
The domestic equities market sustained last week’s positive trading, as the All-Share Index closed higher by 1.9% to 51,903.44 points. Precisely, buying interest in MTNN (+9.5%) supported the market’s performance. Accordingly, the Month-to-Date and Year-to-Date returns increased to +4.6% and +21.5%, respectively.
The total volume of trades declined by 27.6% to 337.56 million units, valued at NGN5.55 billion, and exchanged in 7,684 deals. TRANSCORP was the most traded stock by volume at 37.76 million units, while SEPLAT was the most traded stock by value at NGN842.52 million.
Performance across sectors was broadly positive, as the Consumer Goods (+2.1%), Oil & Gas (-0.5%), and Industrial Goods (+0.2%) indices recorded gains, while the Insurance (-1.3%) and Banking (-0.3%) indices closed lower.
As measured by market breadth, market sentiment was positive (2.0x), as 36 tickers gained relative to 18 losers. NB (+10.0%) and CADBURY (+10.0%) recorded the highest gains of the day, while TRANSCOHOT (-10.0%) and GUINNESS (-9.6%) topped the losers’ list.
CURRENCY
The naira depreciated by 0.5% to NGN419.00/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 141bps to 6.3% in the absence of any funding pressures in the system.
Trading in the Treasury bills secondary market was bullish, as the average yield contracted by 3bps to 3.7%. Across the curve, the average yield was flat at the short and long ends but contracted at the mid (-10bps) segment due to demand for the 157DTM (-58bps) bill. Elsewhere, the average yield was flat at 4.1% in the OMO segment.
The Treasury bonds secondary market traded with mixed sentiments as the average yield was unchanged at 11.1%. Across the benchmark curve, the average yield pared at the short (-1bp) end as investors demanded the MAR-2024 (-3bps) bond; but inched higher at the long (+1bp) end as investors sold off the APR-2037 (+2bps) bond. The average yield closed flat at the mid segment.
