May 17, 2022/Ciordros Report
EQUITIES
The local bourse dipped further into the bear territory as sustained profit-taking in MTNN (-1.7%) drove the benchmark index lower. Precisely, the All-Share Index fell by 0.4% to 52,756.62 points. Consequently, the Month-to-Date and Year-to-Date returns moderated to +6.3% and +23.5%, respectively.
The total volume of trades increased by 253.8% to 1.32 billion units, valued at NGN7.72 billion, and exchanged in 6,449 deals. FCMB was the most traded stock by volume and value at 775.09 million units and NGN2.96 billion, respectively.
Performance across our sectoral coverage was broadly negative, as the Consumer Goods (-0.5%), Banking (-0.4%), Oil & Gas (-0.3%), and Insurance (-0.2%) indices printed losses, while the Industrial Goods (+0.1%) indices closed higher.
As measured by market breadth, market sentiment was negative (0.8x), as 26 tickers lost relative to 20 gainers. FLOURMILL (-9.2%) and GLAXOSMITH (-8.4%) topped the losers’ list, while PZ (+10.0%) and BERGER (+9.7%) recorded the most significant gains of the day.
CURRENCY
The naira appreciated by 0.7% to NGN418.50/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 325bps to 11.5%, despite the inflow from OMO maturities (NGN33.63 billion).
The NTB secondary market traded quietly, as the average yield was unchanged at 3.6%. However, the average yield declined by 6bps to 4.0% in the OMO segment.
Trading in the Treasury bond secondary market was mixed, but with a bullish bias, as the average yield contracted slightly by 2bps to 11.1%. Across the benchmark curve, the average yield expanded at the short (+2bps) as investors sold off MAR-2025 (+12bps) bond; but the average yield dipped at the mid (-8bps) and long (-1bp) segments due to profit-taking on the APR-2029 (-12bps) and MAR-2036 (-10bps) bonds, respectively.
