June 6, 2022/Cordros Report
EQUITIES
The domestic bourse kicked off the trading week with positive sentiments following buying interests in MTNN (+2.0%). Thus, the All-Share Index inched higher by 0.3% to 53,086.46 points. Consequently, the Month-to-Date and Year-to-Date returns advanced to +0.2% and +24.3%, respectively.
The total volume traded increased by 167.0% to 755.62 million units, valued at NGN8.90 billion, and exchanged in 4,297 deals. FBNH was the most traded stock by volume and value at 610.41 million units and NGN6.78 billion, respectively.
Performance across sectors was mixed, as the Oil & Gas (+0.7%) and Industrial Goods (+0.1%) indices recorded gains, while the Insurance (-0.4%), Banking (-0.4%), and Consumer Goods (-0.1%) indices declined.
As measured by market breadth, market sentiment was positive (1.6x) as 19 tickers gained relative to 12 losers. CONOIL (+10.0%) and PHARMDEKO (+9.4%) topped the gainers’ list, while ABCTRANS (-6.1%) and UNILEVER (-3.0%) recorded the most significant losses of the day.
CURRENCY
The naira depreciated by 0.1% to NGN420.25/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 8bps to 7.1%, in the absence of any significant funding pressure on the system.
Trading in the Treasury bills secondary market was bearish, as the average yield expanded by 2bps to 4.0%. Across the curve, the average yield contracted at the mid (-8bps) segment as investors demanded the 171DTM (-19bps) bill but expanded at the long (+9bps) end due to profit-taking on the 276DTM (+72bps) bill. The average yield closed flat at the short end. Similarly, the average yield was unchanged at 4.4% in the OMO segment.
The Treasury bonds secondary market traded quietly, as the average yield was unchanged at 11.1%. Across the benchmark curve, the average yield pared at the short (-1bp) end as investors demanded the MAR-2025 (-15bps) bond. Conversely, the average yield was flat at the mid and long segments.
