June 27, 2022/Cordros Report
EQUITIES
The domestic equities market started the week’s trading on a positive note, as the All-Share Index closed higher by 0.5% to 51,962.85 points. Precisely, renewed demand for MTNN (+2.1%) stock supported the market’s performance. Accordingly, the Month-to-Date loss moderated to -1.9%, while the Year-to-Date returns increased to +21.7%.
The total volume of trades declined by 70.8% to 266.51 million units, valued at NGN2.60 billion, and exchanged in 5,050.00 deals. TRANSCORP was the most traded stock by volume at 31.80 million units, while SEPLAT was the most traded stock by value at NGN414.97 million.
Performance across sectors was broadly positive, as the Banking (+0.5%), Oil & Gas (+0.1%), and Consumer Goods (+0.1%) indices advanced, while the Industrial Goods index closed flat. The Insurance (-0.1%) index was the sole loser of the day.
As measured by market breadth, market sentiment was positive (1.2x), as 18 tickers gained relative to 15 losers. ETI (+9.8%) and JOHNHOLT (+9.5%) recorded the highest gains of the day, while PZ (-10.0%) and ETERNA (-9.3%) topped the losers’ list.
CURRENCY
The naira depreciated by 0.2% to NGN421.00/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate was flat at 14.0%, in the absence of any significant funding pressure on the system.
The Nigerian Treasury bills secondary market traded with bearish sentiments, as the average yield expanded by 27bps to 5.1%. Across the curve, the average yield expanded at the short (+28bps), mid (+76bps), and long (+1bp) segments as market participants sold off the 45DTM (+86bps), 108DTM (+139bps), and 213DTM (+8bps) bills, respectively. Elsewhere, the average yield remained flat at 5.2% in the OMO segment.
Similarly, activities in the Treasury Bonds secondary market were bearish, as the average yield inched higher by 3bps to 11.1%. Across the benchmark curve, the average yield expanded at the short (+1bp) and long (+5bps) ends as investors demanded the APR-2023 (+13bps) and JUL-2045 (+54bps) bonds, respectively. The average yield was flat at the mid segment.
