July 13, 2022/Cordros Report
EQUITIES
Trading in the local bourse carried on last week’s bearish performances as the All Share Index declined by 0.3% to close at 51,390.25 points. Notably, sell-offs in BUACEMENT (-3.6%) and ACCESSCORP (-2.1%) undermined the market’s performance. Accordingly, the Month-to-Date and Year-to-Date returns printed -0.8% and +20.3%, respectively.
The total volume of trades increased by 72.7% to 198.82 million units, valued at NGN2.18 billion, and exchanged in 4,769 deals. GTCO was the most traded stock by volume and value at 51.89 million units and NGN1.06 billion, respectively.
Analysing by sectors, the Consumer Goods (+0.3%) and Banking (+0.1%) indices advanced, while the Insurance (-3.0%) index declined. On the other hand, the Industrial Goods and Oil & Gas indices closed flat.
As measured by market breadth, market sentiment was negative (0.5x), as 23 tickers lost relative to 11 gainers. MULTIVERSE (-10.0%) and REDSTAREX (-9.8%) recorded the most significant losses of the day, while CWG (+10.0%) and CAVERTON (+9.8%) topped the gainers’ list.
CURRENCY
The naira appreciated by 0.4% to NGN424.58/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 5bps to 6.9%. Across the curve, the average yield expanded at the short (+18bps) end as participants sold off the 29DTM (+110bps) bill but contracted at the mid (-1bp) segment due to demand for the 134DTM (-1bp) bill. The average yield closed flat at the long end. Similarly, the average yield expanded by 105bps to 7.4% in the OMO segment.
Proceedings in the Treasury bond secondary market were bearish as the average yield expanded by 4bps to 11.3%. Across the benchmark curve, the average yield expanded at the short (+17bps) end as investors sold off the MAR-2024 (+78bps) bond but contracted at the long (-2bps) end following demand for the MAR-2050 (-14bps) bond. Conversely, the average yield was unchanged at the mid segment.
