July 25, 2022/Cordros Report
EQUITIES
Activities in the domestic equities market resumed the week on a sour note, as investors took profit off MTNN (-6.7%). Thus, the All-Share Index settled lower at 51,400.53 points, declining by 1.1%. Accordingly, the Month-to-Date loss settled at -0.8%, while the Year-to-Date return moderated to +20.3%.
The total volume traded increased by 51.8% to 98.85 million units, valued at NGN2.51 billion, and exchanged in 4,314 deals. UBA was the most traded stock by volume, while AIRTELAFRI was the most traded stock by value at NGN2.51 billion.
Performance across sectors was mixed, as the Banking (+0.2%), Consumer Goods (-0.9%), and Insurance (+0.1%) indices advanced, while the Industrial Goods and Oil & Gas indices closed flat.
As measured by market breadth, market sentiment was negative (0.8x) as 17 tickers lost relative to 13 gainers. MTNN (-7.0%) and UCAP (-5.5%) topped the losers’ list, while FTNCOCOA (+10.0%), and CAP (+10.0%) recorded the most significant gains of the day.
CURRENCY
The naira appreciated by 0.7% to NGN427.17/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate remained unchanged at 15.0%, as system liquidity remained in a short position, closing at NGN25.36 billion.
Activities in the NTB secondary market were mixed, as the average yield closed flat at 7.3%. Across the curve, the average yield contracted at the short (-1bp) end as investors demanded the 17DTM (-1bp) bill but closed flat at the mid and long segments. Elsewhere, the average yield contracted by 1bp to 8.9% at the OMO segment.
The Treasury bond secondary market ended the day on a mixed note, as the average yield was unchanged at 11.8%. Across the benchmark curve, the average yield increased at the short (+1bp) end as investors sold off the APR-2023 (+6bps) bond. Conversely, the average yield was flat at the mid and long segments.
