June 15, 2022/Cordros Report
EQUITIES
Profit-taking activities continued today in the domestic equities market, with bellwether stock – MTNN (-2.4%) weighing down the bourse. Thus, the All-Share Index ended the session 0.6% lower at 52,775.40 points. Accordingly, the Month-to-Date loss settled at -0.4%, while the Year-to-Date return moderated to +23.6%.
The total volume of trades declined by 37.3% to 188.09 million units, valued at NGN2.36 billion, and exchanged in 4,890 deals. UBA was the most traded stock by volume at 36.42 million units, while GTCO was the most traded stock by value at NGN531.30 million.
Analysing by sectors, the Banking (-2.0%), Insurance (-0.9%), and Consumer Goods (-0.5%) indices declined, while the Oil & Gas (+0.1) index inched higher. The Industrial Goods index closed flat.
As measured by market breadth, market sentiment was negative (0.5x), as 24 tickers lost relative to 11 gainers. MEYER (-10.0%) and LINKASSURE (-8.9%) recorded the most significant losses of the day, while TRIPPLEG (+9.2%) and LEARNAFRCA (+5.5%) topped the gainers’ list.
CURRENCY
The naira appreciated by 0.2% to NGN420.00/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate stayed flat at 14.0%, in the absence of any significant funding pressure on the system.
The NTB secondary market traded with bearish sentiments, as the average yield expanded by 16bps to 4.6%. Across the curve, the average yield expanded at the short (+27bps), mid (+19bps), and long (+5bps) segments due to profit-taking on the 71DTM (+78bps), 134DTM (+65bps), and 330DTM (+14bps) bills, respectively. Similarly, the average yield expanded by 13bps to 4.6% in the OMO segment.
Trading in the Treasury bond secondary market was quiet, as the average yield closed flat at 11.1%. Across the benchmark curve, the average yield expanded at the short (+2bps) end as investors sold off the APR-2023 (+16bps) bond; but dipped at the mid (-2bps) and long (-1bp) segments following demand for the APR-2029 (-3bps) and MAR-2050 (-3bps) bonds, respectively.
