June 29, 2022/Cordros Report
EQUITIES
The local bourse traded with mixed sentiments as losses in GTCO (-1.0%) and ETI (-2.7%) offset a gain in FBNH (+1.8%). Thus, the All-Share Index traded flat at 51,802.48 points with the Month-to-Date loss and Year-to-Date return unchanged at -2.2% and +21.3%, respectively.
The total volume of trades increased by 32.4% to 416.47 million units, valued at NGN3.46 billion, and exchanged in 4,466 deals. MBENEFIT was the most traded stock by volume at 212.51 million units while GTCO was the most traded by value at NGN867.54 million.
On sectors, the Insurance (+0.5%), Consumer Goods (+0.1%), and Oil & Gas (+0.1%) indices recorded gains, while the Banking (-0.1%) index declined. The Industrial Goods index closed flat.
As measured by market breadth, market sentiment was positive (1.1x), as 16 tickers gained relative to 14 losers. IKEJAHOTEL (+10.0%) and ROYALEX (+7.3%) topped the gainers’ list while UPL (-9.6%) and CHAMS (-8.0%) recorded the highest losses of the day.
CURRENCY
The naira depreciated by 0.8% to NGN424.88/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.
Trading in the NTB secondary market remained bearish, as the average yield expanded by 12bps to 5.3%. Across the curve, the average yield expanded at the short (+33bps) and mid (+3bps) segments following profit-taking on the 43DTM (+101bps) and 148DTM (+12bps) bills, respectively; but was flat at the long end. Similarly, the average yield expanded by 16bps to 5.3% 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 dipped at the short (-6bps) end as investors demanded the APR-2023 (-27bps) bond, but expanded at the long (+1bp) end due to sell-offs of the JUL-2034 (+3bps) bond. The average yield was flat at the mid segment.
