June 28, 2022/Cordros Report
EQUITIES
The Nigerian equities market reversed yesterday’s gains, closing lower as investors sold off on MTNN (-2.0%) stock. Thus, the NGX ASI declined by 0.3% to 51,803.98 points. Accordingly, the Month-to-Date loss increased to -2.2%, while the Year-to-Date return moderated to +21.3%.
The total volume traded increased by 18.1% to 314.61 million units, valued at NGN12.85 billion, and exchanged in 4,708 deals. MTNN was the most traded stock by volume and value at 42.90 million units and NGN9.87 billion, respectively.
Sectoral performance was mixed, as the Oil & Gas (-0.5%) and Insurance (-0.1%) indices declined, while the Consumer Goods (+0.3%) index advanced. The Industrial Goods and Banking indices closed flat.
As measured by market breadth, market sentiment was negative (0.5x) as 19 tickers lost relative to 10 gainers. UPL (-9.7%) and NGXGROUP (-6.7%) topped the losers’ list, while SOVRENINS (+8.0%) and CHAMS (+4.1%) recorded the most significant gains of the day.
CURRENCY
The naira depreciated by 0.1% to NGN421.50/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.
Activities in the NTB secondary market were bearish, as the average yield expanded by 14bps to 5.2%. Across the curve, the average yield expanded at the short (+45bps) end, due to profit-taking on the 16DTM (+271bps) bill, but contracted at the mid (-2bps) segment following buying interest in the 149DTM (-8bps) bill. The average yield closed flat at the long end. Elsewhere, the average yield was unchanged at 5.2% in the OMO segment.
The Treasury bond secondary market traded with mixed sentiments, although with a bearish tilt, as the average yield expanded slightly by 1bp to 11.1%. Across the benchmark curve, the average yield dipped at the short (-3bps) end as investors demanded the JAN-2026 (-20bps) bond but expanded at the mid (+4bps) and long (+2bps) segments following sell-offs of the APR-2032 (+6bps) and JUL-2034 (+7bps) bonds, respectively.
