May 30, 2022/Cordros Report
EQUITIES
Activities in the domestic equities market resumed the week on a sour note, as investors took profit off MTNN (-3.0%). Thus, the All-Share Index settled lower by 0.6% at 53,772.35 points. Accordingly, the Month-to-Date and Year-to-Date returns moderated to +8.3% and 25.9%, respectively.
The total volume traded surged to 27.56 billion units (previously: 208.09 million units), valued at NGN194.36 billion and exchanged in 4,586 deals, following a block-divestment in UBN. Thus, UBN was the most traded stock by volume and value at 27.34 billion and 191.40 billion units, respectively.
Performance across sectors was mixed, as the Banking (-0.3%), Consumer Goods (-0.1%), and Industrial Goods (-0.1%) indices declined, while Insurance (+0.7%), and Oil & Gas (+0.1%) indices advanced.
As measured by market breadth, market sentiment was positive (1.4x) as 23 tickers gained relative to 17 losers. TRANSEXPR (+9.9%) and NPFMCRFBK (+9.8%) recorded the highest gains of the day, while PRESCO (-10.0%) and UPL (-8.8%) topped the losers’ list.
CURRENCY
The naira depreciated by 0.2% to NGN420.25/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 33bps to 13.7%, following inflows from FGN Bond coupon Payment (NGN5.63 billion).
The Treasury bills secondary market was quiet as the average yield remained at 3.7%. Across the curve, the average yield inched higher at the short (+1bp) end, as market participants sold off the 31DTM (+7bps) bill; but was flat at the mid and long segments. Similarly, the average yield was unchanged at 4.4% in 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 11.1%. Across the benchmark curve, the average yield contracted at the mid (-2bps) and long (-2bps) segments as investors demanded the APR-2022 (-6bps) and JUL- 2034 (-15bps) bonds; but expanded at the short (+2bps) end following profit-taking on the MAR-2025 (+11bps) bond.
