May 23, 2022/Cordros Report
EQUITIES
The domestic bourse kicked off the week on a negative note as profit-taking witnessed in PRESCO (-10.0%) caused a 0.1% decline in the benchmark index. Thus, the NGX ASI settled at 52,911.51 points. Accordingly, the Month-to-Date and Year-to-Date returns moderated to +6.6% and +23.9%, respectively.
The total volume traded declined by 39.7% to 263.34 million units, valued at NGN3.55 billion, and exchanged in 4,856 deals. JAIZBANK was the most traded stock by volume at 114.01 million units, while PRESCO was the most traded stock by value at NGN1.19 billion.
Performance across sectors was mixed, as the Banking (+0.1%), Consumer Goods (+0.1%), and Oil & Gas (+0.1%) indices advanced, while the Insurance (-2.3%) and Industrial Goods (-2.3%) indices closed in the red.
As measured by market breadth, market sentiment was negative (0.9x) as 24 tickers lost relative to 21 gainers. PRESCO (-10.0%) and GSPECPLC (-10.0%) topped the losers’ list while CONOIL (+10.0%) and MRS (+9.9%) recorded the most significant gains of the day.
CURRENCY
The naira depreciated by 0.3% to NGN420.33/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate was unchanged at 12.5% in the absence of any significant inflows in the system.
The Treasury bills secondary market traded in a lull, as the average yield closed flat at 3.7%. Elsewhere, the average yield expanded by 5bps to 4.0% at the OMO segment.
Activities in the Treasury bond secondary market were mixed, albeit with a bullish tilt, as the average yield pared by 1bp to 11.0%. Across the benchmark curve, the average yield contracted at the short (-2bps), mid (-2bps) and long segments (-1bps) segments as investors demanded the MAR-2027 (-5bps), APR-2022 (-5bps), and MAR-2035 (-10bps) bonds, respectively.
