July 6, 2022/Cordros Report
EQUITIES
The local bourse closed lower for the third straight session as profit-taking witnessed in UBN (-9.8%) caused a 0.1% decline in the benchmark index. Thus, the NGX ASI settled at 51,556.54 points. Consequently, the Month-to-Date loss was unchanged at -0.5%, while the Year-to-Date gain moderated to +20.7%.
The total volume of trades declined by 42.4% to 135.26 million units, valued at NGN1.44 billion, and exchanged in 3,745 deals. TRANSCORP was the most traded stock by volume at 15.55 million units, while GTCO was the most traded stock by value at NGN267.09 million.
Performance across our sectoral coverage was broadly negative, as the Insurance (-1.4%), Banking (-0.6%), and Oil & Gas (-0.2%) indices declined, while the Industrial Goods and Consumer Goods indices closed flat.
As measured by market breadth, market sentiment was negative (0.9x), as 16 tickers lost relative to 15 gainers. CHAMPION (-10.0%) and NEM (-10.0%) topped the losers’ list, while ACADEMY (+9.8%) and CHIPLC (+8.7%) recorded the most significant gains of the day.
CURRENCY
The naira appreciated by 0.5% to NGN427.75/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 58bps to 7.0%. Across the curve, the average yield expanded at the short (+75bps), mid (+81bps), and long (+38bps) ends due to profit-taking on the 85DTM (+203bps), 99DTM (+287bps), and 218DTM (+161bps) bills, respectively. Similarly, the average yield expanded by 34bps to 6.3% in the OMO segment.
Proceedings in the Treasury bond secondary market were bearish, as the average yield expanded by 3bps to 11.2%. Across the benchmark curve, the average yield expanded at the short (+11bps) end as investors sold off the APR-2023 (+57bps) bond; but was flat at the mid and long segments.
