June 16, 2022/Cordros Report
EQUITIES
The local bourse traded positively for most of the day, however late profit-taking activities in BUAFOODS (-10.0%) and AIRTELAFRI (-1.2%) ensured the market closed lower. Precisely, the NGX ASI dipped by 0.7% to 52,411.09 points. Consequently, the Month-to-Date loss increased to -1.1%, while the Year-to-Date return moderated to +22.7%.
The total volume traded increased by 12.5% to 211.61 million units, valued at NGN2.37 billion, and exchanged in 4,750 deals. STERLNBANK was the most traded stock by volume at 63.66 million units, while ZENITHBANK was the most traded stock by value at NGN382.57 million.
Performance across sectors was broadly negative, as the Oil & Gas (-0.8%), Banking (-0.6%), and Insurance (-0.3%) indices recorded losses, while the Consumer Goods and Industrial Goods indices closed flat.
As measured by market breadth, market sentiment was negative (0.5x) as 22 tickers lost relative to 10 gainers. CONOIL (-10.0%) and BUAFOODS (-10.0%) topped the losers’ list, while LINKASSURE (+9.8%) and COURTVILLE (+8.0%) recorded the highest gains of the day.
CURRENCY
The naira depreciated by 0.1% to NGN420.50/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate was unchanged at 14.0%, 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 by 2bps to 4.7%. Across the curve, the average yield expanded at the short (+11bps) and mid (+13bps) segments following profit-taking activities on the 14DTM (+82bps) and 161DTM (+67bps) bills, respectively, but contracted at the long (-12bps) end as participants demanded the 329DTM (-49bps) bill. Elsewhere, the average yield was unchanged at 4.6% in the OMO segment.
The Treasury bond secondary market traded quietly, as the average yield closed flat at 11.1%. Across the benchmark curve, the average yield inched higher at the short (+1bp) and mid (+1bp) segments as investors sold off the MAR-2024 (+22bps) and APR-2029 (+1bp) bonds, respectively; the average yield pared at the long (-1bp) end due to demand for the MAR-2036 (-3bps) bond.
