July 14, 2022/Cordros Report
EQUITIES
Bearish sentiments persisted in the Nigerian equities market, as losses in ZENITHBANK (-1.7%) and INTBREW (-5.2%) dragged the benchmark index lower. Precisely, the All-Share Index dipped by 0.1% to 51,339.01 points. Accordingly, the Month-to-Date loss increased to -0.9%, while the Year-to-Date return moderated to +20.2%.
The total volume traded declined by 42.0% to 115.41 million units, valued at NGN1.21 billion, and exchanged in 3,731 deals. TRANSCORP was the most traded stock by volume at 12.18 million units, while ZENITHBANK was the most traded stock by value at NGN148.27 million.
On sectoral performance, the Consumer Goods (-0.9%) and Banking (-0.7%) indices declined, while the Insurance (+0.6%) index was the sole gainer of the day. The Industrial Goods and Oil & Gas indices closed flat.
As measured by market breadth, market sentiment was positive (1.7x), as 15 tickers gained relative to 9 losers. ACADEMY (+8.7%) and REGALINS (+8.0%) topped the gainers’ list, while CHAMPION (-8.7%) and IKEJAHOTEL (-7.7%) recorded the most significant losses of the day.
CURRENCY
The naira was flat at NGN424.63/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 4bps to 6.9%. Across the curve, the average yield was flat at the short and long ends but expanded at the mid (+18bps) segment following profit-taking on the 196DTM (+72bps) bill. Elsewhere, the average yield closed flat at 7.4% in the OMO segment.
The Treasury bonds secondary market was bearish as the average yield expanded by 9bps to 11.4%. Across the benchmark curve, the average yield expanded at the short (+21bps), mid (+7bps), and long (+2bps) ends as investors sold off the MAR-2024 (+65bps), JUL-2030 (+17bps), and MAR-2050 (+15bps) bonds, respectively.
