July 18, 2022/Cordros Report
EQUITIES
The domestic bourse kicked off the trading week with positive sentiments following buying interests in SEPLAT (+10.0%). Thus, the All-Share Index inched higher by 0.2% to 52,319.94 points. Consequently, the Month-to-Date and Year-to-Date returns advanced to +1.0% and +22.5%, respectively.
The total volume traded declined by 38.8% to 116.28 million units, valued at NGN3.46 billion, and exchanged in 4,525 deals. UBA was the most traded stock by volume at 12.93 million units, while SEPLAT was the most traded stock by value at NGN1.33 billion.
Performance across sectors was mixed, as the Consumer Goods (-0.6%) and Insurance (-0.5%) indices declined, while the Oil & Gas (+4.0%) index advanced. The Banking and Industrial Goods indices closed flat. .
As measured by market breadth, market sentiment was negative (0.8x) as 21 tickers lost relative to 16 gainers. CWG (-10.0%) and ACADEMY (-9.5%) recorded the most significant losses of the day, while SEPLAT (+10.0%) and CORNERST (+8.8%) topped the gainers’ list.
CURRENCY
The naira appreciated by 0.3% to NGN429.13/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate was unchanged at 14.0% despite the inflow from FGN bond coupon payment (NGN65.36 billion)
Trading activities in the Treasury bills secondary market were mixed, as the average yield stayed flat at 6.9%. Across the curve, the average yield contracted at the short (-1bp) end, following demand for the 24DTM (-1bp) bill; but was flat at the mid and long segments. Elsewhere, the average yield was flat at 7.4% in the OMO segment.
Similarly, the Treasury bond secondary market closed on a quiet note, as the average yield was flat at 11.4%. Across the benchmark curve, the average yield was flat at the short and mid segments but expanded at the long (+1bp) end as investors sold off the MAR-2035 (+6bps) bond.
