May 16, 2022/Cordros Report
EQUITIES
Trading activities in the domestic bourse started the week on a negative note, as profit-taking witnessed in WAPCO (-8.3%) and MTNN (-0.6%) caused a 0.3% decline in the benchmark index. Thus, the NGX ASI settled at 52,944.09 points. Accordingly, the Month-to-Date and Year-to-Date returns decreased to +6.7% and +23.9%, respectively.
The total volume of trades increased by 23.3% to 374.18 million units, valued at NGN4.96 billion, and exchanged in 6,854 deals. TRANSCORP was the most traded stock by volume at 88.59 million units, while SEPLAT was the most traded stock by value at NGN1.41 billion.
Sector performance was broadly negative, as the Consumer Goods index (-0.7%), Industrial Goods (-0.6%), and Banking (-0.2%) indices closed in the red, while the Insurance (+2.5%) and Oil & Gas (+0.6%) indices advanced.
As measured by market breadth, market sentiment was positive (1.3x), as 25 tickers gained relative to 20 losers. NNFM (+9.6%) and TRANSCORP (+8.5%) recorded the highest gains of the day, while CHAMPION (-9.8%) and GLAXOSMITH (-9.5%) topped the losers’ list.
CURRENCY
The naira depreciated by 0.6% to NGN421.50/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 92bps to 8.3% in the absence of any significant funding pressure on the system.
Activities in the Treasury bills secondary market were quiet, as the average yield was unchanged at 3.6%. Elsewhere, the average yield pared by 1bp to 4.0% in the OMO segment.
The Treasury bond secondary market traded with mixed sentiments, as the average yield closed flat at 11.1%. Across the benchmark curve, the average yield pared at the short (-1bp) end as investors demanded the MAR-2024 (-3bps) bond; the average yield closed flat at the mid and long segments.
