July 27, 2022/Cordros Report
EQUITIES
Bearish sentiments persisted in the local bourse in today’s session as the All-Share Index declined by 0.5% to 50,188.55 points. Notably, sustained sell-offs in MTNN (-1.3%) stock undermined the market’s performance. Accordingly, the Month-to-Date and Year-to-Date returns moderated to -3.1% and +17.5%, respectively.
The total volume of trades increased by 431.2% to 829.51 million units, valued at NGN4.11 billion, and exchanged in 4,977 deals. INTENEGINS was the most traded stock by volume at 637.11 million units, while MTNN was the most traded stock by value at NGN1.13 billion.
Analysing by sectors, the Banking (-2.3%), Insurance (-1.1%) and Oil & Gas (-1.1%) indices declined, the consumer Goods (+0.1) index gained while the Industrial Goods index closed flat.
As measured by market breadth, market sentiment was negative (0.1x), as 32 tickers lost relative to 3 gainers. JAIZBANK (-10.0%) and PRESTIGE (-10.0%) topped the losers’ list, while FCMB (+3.3%) and NASCON (+0.9%) recorded the highest gains of the day.
CURRENCY
The naira appreciated by 0.2% to NGN430.00/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate remained elevated at 15.0%, as the funding conditions in the system deteriorated further, with system liquidity closing in a net short position of NGN163.62 billion.
Activities in the NTB secondary market remained quiet, as market participants positioned for today’s NTB PMA. Thus, the average yield was unchanged at 7.2%. Similarly, the average yield was flat at 8.9% in the OMO segment.
Proceedings in the Treasury bond secondary market were bearish, as the average yield expanded by 5bps to 11.9%. Across the benchmark curve, the average yield expanded at the short (+7bps), mid (+4bps) and long (+4bps) segments, following profit-taking on the JAN-2026 (+35bps), APR-2032 (+10bps) and MAR-2035 (+20bps) bonds, respectively.
