July 20, 2022/Cordros Report
EQUITIES
Trading in the local bourse carried on yesterday’s bearish performances as the All-Share Index declined by 0.2% to close at 52,186.52 points. Notably, selloffs in NB (-6.1%) and GTCO (-2.6%) undermined the market’s performance. Accordingly, the Month-to-Date and Year-to-Date returns moderated to +0.7% and +22.2%, respectively.
The total volume of trades increased by 15.9% to 238.27 million units, valued at NGN3.34 billion, and exchanged in 3,814 deals. NB was the most traded stock by volume and value at 30.38 million units and NGN1.51 billion, respectively.
Analysing by sectors, the Consumer Goods (-1.0%), Oil & Gas (-1.0%), Insurance (-0.6%), and Banking (-0.6%) indices declined, while the Industrial Goods index closed flat.
As measured by market breadth, market sentiment was negative (0.5x), as 22 tickers lost relative to 11 gainers. NAHCO (-10.0%) and FTNCOCOA (-8.6%) topped the losers’ list. While CWG (+9.9%) and MULTIVERSE (+9.9%) recorded the most significant gains of the day.
CURRENCY
The naira depreciated by 0.6% to NGN426.58/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 50bps to 15.0%, in the absence of any funding pressure on the system.
Activities in the Treasury bills secondary market were quiet, as the average yield was flat at 7.0%. Elsewhere, the average yield expanded by 159bps to 9.0% in the OMO segment.
The Treasury bond secondary market traded with bearish sentiments, as the average yield expanded by 12bps to 11.6%. Across the benchmark curve, the average yield expanded at the short (+27bps) and long (+9bps) ends following profit-taking on the MAR-2025 (+135bps) and APR-2049 (+38bps) bonds respectively. Conversely, the average yield closed flat at the mid segment.
