June 20, 2022/Cordros Report
EQUITIES
The domestic bourse kicked off the week on a negative note as profit-taking witnessed in DANGCEM (-10.0%) caused a 2.0% decline in the benchmark index. Thus, the NGX ASI settled at 50,756.74 points. Accordingly, the Month-to-Date loss settled at -4.2%, while the Year-to-Date return moderated to +18.8%.
The total volume traded declined by 43.0% to 345.00 million units, valued at NGN3.07 billion, and exchanged in 5,075 deals. FCMB was the most traded stock by volume and value at 177.59 million units and NGN668.97 million, respectively.
Performance across sectors was broadly negative, as the Industrial Goods (-5.3%), Consumer Goods (-1.2%), Insurance (-0.9%), and Oil & Gas (+0.1%) indices closed in the red, while the Banking (+0.1%) index advanced.
As measured by market breadth, market sentiment was negative (0.2x) as 30 tickers lost relative to 6 gainers. DANGCEM (-10.0%) and UBN (-10.0%) topped the losers’ list, while JAIZBANK (+5.3%) and REGALINS (+3.7%) recorded the most significant gains of the day.
CURRENCY
The naira appreciated by 0.2% to NGN421.33/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.
Trading in the Treasury bills secondary market was bullish, as the average yield contracted by 2bps to 4.6%. Across the curve, the average yield declined at the short (-2bps), mid (-5bps) and long (-1bp) segments as investors demanded the 66DTM (-8bps), 157DTM (-38bps) and 220DTM (-7bps) bills, respectively. Elsewhere, the average yield expanded by 3bps to 4.6% in the OMO segment.
Proceedings in the Treasury bond secondary market were mixed, although with a bearish tilt, as the average yield expanded slightly by 1bp to 11.1%. Across the benchmark curve, the average yield closed flat at the short end but expanded at the mid (+4bps) and long (+1bp) segments as investors sold off the JUL-2030 (+5bps) and MAR-2050 (+3bps) bonds, respectively.
