June 22, 2022/Cordros Report
EQUITIES
Trading in the local bourse sustained its positive momentum from yesterday as the All-Share Index advanced by 0.6% to 51,377.21 points. Today’s performance was supported by gains in DANGCEM (+1.9%) and BUAFOODS (+6.9%). Accordingly, the Month-to-Date loss moderated to -3.0%, while the Year-to-Date returns increased to +20.3%.
The total volume traded increased by 37.4% to 229.37 million units, valued at NGN3.20 billion, and exchanged in 4,536 deals. OANDO was the most traded stock by volume at 34.46 million units, while MTNN was the most traded stock by value at NGN565.62 million.
Performance across sectors was broadly negative, as the Banking (-0.6%), Insurance (-0.4%), Industrial Goods (-0.3%) and Oil & Gas (-0.2%) indices declined, while the Consumer Goods (+0.1%) index was the sole gainer.
As measured by market breadth, market sentiment was positive (1.1x) as 18 tickers gained relative to 16 losers. ELLAHLAKES (+10.0%) and PRESCO (+9.7%) recorded the highest gains of the day, while NNFM (-9.9%) and JOHNHOLT (-9.9%) topped the losers’ list.
CURRENCY
The naira depreciated by 0.1% to NGN420.50/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 13bps to 14.1%, following outflows for the FGN bond auction (NGN226.13 billion).
The Nigerian Treasury bills secondary market traded with bearish sentiments, as the average yield expanded by 3bps to 4.7%. Across the curve, the average yield expanded at the short (+4bps) and mid (+4bps) segments as participants sold off the 64DTM (+26bps) and 115DTM (+15bps) bills, respectively; but was flat at the long end. Similarly, the average yield expanded by 12bps to 5.2% in the OMO segment.
Trading in the Treasury bonds secondary market was bullish, as the average yield dipped by 6bps to 11.1%. Across the benchmark curve, the average yield contracted at the short (-6bps), mid (-4bps), and long (-7bps) segments, following buying interests on the MAR-2024 (-15bps), APR-2032 (-7bps), and MAR-2050 (-13bps) bonds, respectively.
