July 5, 2022/Cordros Report
EQUITIES
Sentiments remained bearish in the Nigerian equities market, as losses in BUAFOODS (-6.7%) drove the benchmark index lower. Thus, the All-Share Index dipped by 0.4% to 51,586.50 points. Accordingly, the Month-to-Date loss increased to -0.5%, while the Year-to-Date return moderated to +20.8%.
The total volume traded increased by 20.9% to 234.61 million units, valued at NGN2.57 billion, and exchanged in 4,646 deals. CAP was the most traded stock by volume at 29.32 million units, while GTCO was the most traded stock by value at NGN592.44 million.
On sectoral performance, the Consumer Goods (-0.6%), Banking (-0.5%), and Insurance (-0.5%) indices declined, while the Industrial Goods and Oil & Gas indices closed flat.
As measured by market breadth, market sentiment was positive (1.5x), as 22 tickers gained relative to 15 losers. REDSTAREX (+10.0%) and JOHNHOLT (+9.8%) topped the gainers’ list, while INTBREW (-9.5%) and CHIPLC (-8.0%) recorded the most significant losses of the day.
CURRENCY
The naira depreciated by 1.0% to NGN430.00/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 activities in the NTB secondary market remained bearish, as the average yield expanded by 69bps to 6.4%. Across the curve, the average yield expanded at the short (+197bps) and mid (+54bps) segments following sell-offs of the 37DTM (+305bps) and 142DTM (+215bps) bills, respectively; but pared at the long (-1bp) end as investors demanded the 338DTM (-53bps) bill. Similarly, the average yield expanded by 30bps to 6.0% in the OMO segment.
The Treasury bond secondary market ended the day mixed, as the average yield was unchanged at 11.1%. Across the benchmark curve, the average yield was flat at the short end but inched higher at the mid (+1bp) segment as investors sold off the FEB-2028 (+5bps) bond. Conversely, the average yield contracted slightly at the long (-1bp) end following demand for the MAR-2050 (-17bps) bond.
