May 26, 2022/Cordros Report
EQUITIES
Trading in the local bourse sustained its positive momentum from yesterday as the All-Share Index advanced by 1.1% to 53,151.32 points. Today’s performance was supported by bargain hunting in MTNN (+4.4%). Consequently, the Month-to-Date and Year-to-Date returns increased to +7.1% and +24.4%, respectively.
The total volume traded decreased by 30.4% to 266.18 million units, valued at NGN5.12 billion, and exchanged in 5,501 deals. TRANSCORP was the most traded stock by volume at 47.65 million units, while MTNN was the most traded stock by value at NGN1.88 billion.
Performance across sectors was broadly positive, as the Banking (+1.2%), Consumer Goods (+0.9%), Insurance (+0.4%), and Industrial Goods (+0.4%) indices closed in the green, while the Oil & Gas (-0.3%) index declined.
As measured by market breadth, market sentiment was positive (2.2x) as 24 tickers gained relative to 11 losers. CHAMPION (+9.9%) and LINKASSURE (+9.1%) recorded the highest gains of the day, while NPFMCRFBK (-9.9%) and UACN (-9.7%) topped the losers’ list.
CURRENCY
The naira depreciated by 0.2% to NGN418.88/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 58bps to 14.1%, in the absence of any significant funding pressure on the system.
Activities in the NTB secondary market were mixed, but with a bearish tilt as the average yield expanded slightly by 1bp to 3.9%. Across the curve, the average yield contracted at the short (-2bps) end as participants demanded the 91DTM (-10bps) bill, but expanded at the mid (+3bps) segment following profit-taking on the 182DTM (+21bps). Conversely, the average yield was flat at the mid segment. Elsewhere, the average yield was unchanged at 4.4% in the OMO segment.
The Treasury bond secondary market turned bearish, as the average yield expanded by 2bps to 11.0%. Across the benchmark curve, the average yield expanded at the short (+11bps) end as investors took profit off the JAN-2026 (+51bps) bond but closed flat at the mid and long segments.
