May 24, 2022/Cordros Report
EQUITIES
The local bourse dipped further into the bear territory as investors sold off MTNN (-7.6%). Thus, the All-Share Index declined by 1.8% to 51,949.64 points. Consequently, the Month-to-Date and Year-to-Date returns moderated to +4.7% and +21.6%, respectively.
The total volume of trades increased by 173.5% to 720.19 million units, valued at NGN8.87 billion, and exchanged in 6,096 deals. ETI was the most traded stock by volume and value at 257.63 million units and NGN2.96 billion, respectively.
Sectoral performance was broadly negative, as losses in the Consumer Goods (-1.2%), Insurance (-1.1%), Industrial Goods (-0.6%), Banking (-0.4%), and Oil & Gas (-0.3%) indices reflected the overall market’s performance.
As measured by market breadth, market sentiment was negative (0.4x), as 38 tickers lost relative to 14 gainers. GUINNESS (-10.0%) and GSPECPLC (-9.8%) recorded the most significant losses of the day, while MRS (+9.7%) and ABBEYBDS (+9.1%) topped the gainers’ list.
CURRENCY
The naira appreciated by 0.3% to NGN419.00/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate remained flat at 12.5%, despite the inflow from OMO maturities (NGN30.00 billion).
Activities in the NTB secondary market were bearish as the average yield expanded by 3bps to 3.7%. Across the curve, the average yield contracted at the short end (+3bps) following demand for the 93DTM (-15bps) bill; but expanded at the long (+9bps) end as participants sold off the 184DTM (+62bps) bill. Conversely, the average yield was flat at the mid-segment. Elsewhere, the average yield expanded by 10bps to 4.1% in the OMO segment.
The Treasury bonds secondary market traded with bullish sentiments as the average yield contracted by 2bps to 11.0%. Across the benchmark curve, the average yield expanded at the short (+3bps) end as investors took profits off the APR-2023 (+9bps) bond; but contracted at the mid (-10bps) segment following demand for the APR-2029 (-17bps) bond. The average yield was flat at the long end.
