June 23, 2022/Cordros Report
EQUITIES
The Nigerian equities market extended its gains for the third consecutive session as investors’ interest in MTNN (+3.9%) and some banking stocks drove the market higher. Precisely, the NGX ASI advanced by 0.5% to 51,618.73 points. Consequently, the Month-to-Date loss moderated to -2.6%, while the Year-to-Date return increased to +20.8%.
The total volume traded declined by 2.7% to 223.25 million units, valued at NGN2.86 billion, and exchanged in 4,028 deals. MBENEFIT was the most traded stock by volume at 40.13 million units, while PRESCO was the most traded stock by value at NGN383.18 million.
Sectoral performance was broadly positive, as the Insurance (+0.7%), Oil & Gas (+0.5%), and Banking (+0.2%) indices recorded gains, while the Consumer Goods (-0.3%) index declined. The Industrial Goods index closed flat.
As measured by market breadth, market sentiment was negative (0.8x) as 22 tickers lost relative to 17 gainers. ACADEMY (-10.0%) and ELLAHLAKES (-10.0%) recorded the highest losses of the day, while FBNH (+9.8%) and FTNCOCOA (+9.4%) topped the gainers’ list.
CURRENCY
The naira appreciated by 0.1% to NGN420.17/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 13bps to 14.0%, in the absence of any significant inflow into the system.
Trading in the Treasury bills secondary market was bearish, as the average yield expanded by 3bps to 4.7%. Across the curve, the average yield expanded at the short (+6bps) and mid (+3bps) segments due to profit-taking on the 49DTM (+45bps) and 154DTM (+14bps) bills, respectively; but closed flat at the long end. Elsewhere, the average yield was unchanged at 5.2% 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 and long ends, but expanded at the mid (+2bps) segment as investors sold off the FEB-2028 (+6bps) bond.
