June 8, 2022/Cordros Report
EQUITIES
The bearish run in the local bourse continued today as the All-Share Index dipped by 4bps to 53,170.73 points. The performance was driven by a price drop in ZENITHBANK (-2.4%) stock. Accordingly, the Month-to-Date return moderated to +0.3%, while the Year-to-Date return was unchanged at +24.5%.
The total volume of trades increased by 27.9% to 318.42 million units, valued at NGN3.34 billion, and exchanged in 4,345 deals. TRANSCORP was the most traded stock by volume at 165.21 million units, while, NESTLE was the most traded stock by value at NGN678.54 million.
Analysing by sectors, the Insurance (+1.5%), Oil & Gas (+0.5%), Consumer Goods (+0.1%), and Industrial Goods (+0.1%) indices closed higher, while Banking (-1.2%) index closed in the red.
As measured by market breadth, market sentiment was negative (0.9x), as 17 tickers lost relative to 15 gainers. CILEASING (-8.6%) and FTNCOCOA (-8.3%) recorded the most significant losses of the day, while UPL (+9.4%) and CORNERST (+8.9%) topped the gainers’ list.
CURRENCY
The naira depreciated by 0.5% to NGN422.50/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 183bps to 6.5%, despite funding pressures from net NTB issuances (NGN15.37 billion).
The Treasury bills secondary market traded with mixed sentiments albeit with a bearish bias, as the average yield expanded slightly by 1bp to 4.0%. Across the curve, the average yield contracted at the short (-2bps) end following demand for the 63DTM (-15bps) bill, but expanded at the mid (+6bps) segment as participants sold off the 126DTM (+17bps) bills. The average yield was flat at the long end. Elsewhere, the average yield was flat at 4.4% in the OMO segment.
Trading in the Treasury bond secondary market was bullish, as the average yield contracted by 5bps to 11.1%. Across the benchmark curve, the average yield expanded at the short (+3bps) end as investors sold off the MAR-2027 (+7bps) bond, but contracted at the mid (-14bps) and long (-4bps) segments following buying interests on the JUL-2030 (-19bps) and JUL-2034 (-17bps) bonds, respectively.
