June 21, 2022/Cordros Report
EQUITIES
The Nigeria equities market edged a positive performance in today’s trading session, as bargain hunting in DANGCEM (+8.3%) ensured the market closed higher. Precisely, the NGX ASI advanced by 0.7% to 51,091.75 points. Consequently, the Month-to-Date loss moderated to -3.6%, while the Year-to-Date return increased to +19.6%.
The total volume traded declined by 51.6% to 166.97 million units, valued at NGN2.74 billion, and exchanged in 4,398 deals. TRANSCORP was the most traded stock by volume at 19.34 million units, while SEPLAT was the most traded stock by value at NGN556.03 million.
Sectoral performance was broadly positive, as the Industrial Goods (+3.9%), Oil & Gas (+0.7%), Banking (+0.4%) indices closed higher, while the Consumer Goods (-0.1%) and Insurance (-0.1%) indices declined.
As measured by market breadth, market sentiment was negative (0.7x) as 21 tickers lost relative to 14 gainers. BUAFOODS (-10.0%) and LEARNAFRCA (-10.0%) recorded the most significant losses of the day, while LIVESTOCK (+10.0%) and MRS (+9.8%) topped the gainers’ list.
CURRENCY
The naira appreciated by 0.3% to NGN420.28/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.
Activities in the NTB secondary market were mixed as the average yield was unchanged at 4.6%. However, across the curve, the average yield expanded at the short (+11bps) and mid (+27bps) segments as participants sold off the 100DTM (+46bps) and 114DTM (+77bps) bills, respectively; but contracted at the long (-23bps) end due to demand for the 310DTM (-89bps) bill. Elsewhere, the average yield expanded by 45bps to 5.1% in the OMO segment.
The Treasury bonds secondary market was mixed, albeit with a bullish tilt as the average yield pared by 1bp to 11.1%. Across the benchmark curve, the average yield contracted at the mid (-1bp) and long (-3bps) segments as investors demanded the FEB-2028 (-3bps) and APR-2037 (-14bps) bonds, respectively. The average yield was flat at the short end.
