May 11, 2022/Cordros Report
EQUITIES
Bullish sentiments returned to the Nigerian equities market as investors’ demand for the top communication player – MTNN (+9.2%), drove the benchmark higher. Precisely, the All-Share Index increased by 2.0% to 52,838.45 points. Consequently, the Month-to-Date and Year-to-Date returns moderated to +6.5% and +23.7%, respectively.
The total volume of trades increased by 25.9% to 417.39 million units, valued at NGN7.33 billion, and exchanged in 7,255 deals. JAIZBANK was the most traded stock by volume at 40.44 million units, while MTNN was the most traded stock by value at NGN1.29 million.
Sectoral performance under our coverage was broadly positive, as the Consumer Goods (+1.5%), Industrial Goods (+1.4%), Insurance (+0.9%), Oil & Gas (+0.1%) indices posted gains, while the Banking index closed flat.
As measured by market breadth, market sentiment was positive (1.5x), as 40 tickers gained relative to 27 losers. CWG (+10.0%) and OKOMUOIL (+10.0%) recorded the highest gains of the day, while IKEJAHOTEL (-10.0%) and BUAFOODS (-10.0%) topped the losers’ list.
CURRENCY
The naira depreciated by 0.1% to NGN418.75/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 138bps to 6.4% in the absence of any significant funding pressure on the system.
Trading in the Treasury bills secondary market was mixed, albeit with a bullish tilt, as the average yield declined by 2bps to 3.7%. Across the curve, the average yield contracted at the mid (-6bps) segment as market participants demanded the 141DTM (-58bps) bill but closed flat at the short and long ends. Similarly, the average yield declined by 5bps to 4.0% in the OMO segment.
The Treasury bond secondary market closed on a bullish note, as the average yield contracted by 2bps to 11.1%. Across the benchmark curve, the average yield contracted at the short (-1bp) and long (-4bps) ends as investors demanded the MAR-2025 (-5bps) and APR-2037 (-26bps) bonds, respectively, but closed flat at the mid segment.
