June 3, 2022/Cordros Report
EQUITIES
The bears continued to dominate in the Nigerian equities market as investors sold off NB (-4.7%) stock. Precisely, the All-Share Index dipped by 0.3% to 52,815.78 points. Consequently, the Month-to-Date loss printed -0.3%, while the Year-to-Date return moderated to +23.7%.
The total volume traded decreased by 7.1% to 274.43 million units, valued at NGN4.03 billion, and exchanged in 5,011 deals. FBNH was the most traded stock by volume and value at 74.66 million units and NGN836.14 billion, respectively.
On sectors, the Consumer Goods (-1.3%), Banking (-1.0%), Insurance (-0.6%), and Oil & Gas (-0.1%) indices recorded losses, while the Industrial Goods index closed flat.
As measured by market breadth, market sentiment was negative (0.4x) as 25 tickers lost relative to 11 gainers. ROYALEX (-10.0%) and GSPECPLC (-9.8%) recorded the most significant losses of the day, while ELLAHLAKES (+9.6%) and PZ (+9.6%) topped the gainers’ list.
CURRENCY
The naira depreciated by 0.1% to NGN419.50/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 83bps to 6.2%, in the absence of any significant inflow into the system.
Trading in the Treasury bills secondary market was bearish, as the average yield expanded by 7bps to 3.9%. Across the curve, the average yield declined at the short (-14bps) end following buying interest in the 56DTM (-71bps) bill but expanded at the mid (+23bps), and long (+11bps) segments as investors sold off the 98DTM (+53bps) and 252DTM (+22bps) bills, respectively. The average yield was unchanged at 4.4% in the OMO segment.
The Treasury bonds secondary market traded with mixed sentiments, albeit with a bearish tilt, as the average expanded by 1bp to 11.1%. Across the benchmark curve, the average yield expanded at the short (+5bps) end as investors sold off the JAN-2026 (+15bps) bond but pared at the mid (-1bp) segment as investors demanded the JUL-2020 (-2bps) bond. The average yield closed flat at the long end.
