July 28, 2022/Cordros Report
EQUITIES
The Nigerian equities market extended its losses for the fourth consecutive session as investors’ profit-taking activities on NESTLE (-9.8%) and ZENITHBANK (-8.3%) drove the market lower. Consequently, the All-Share Index fell below the 50,000 psychological mark, declining by 1.0% to 49,667.14 points – its lowest point in 3 months. Accordingly, the Month-to-Date and Year-to-Date returns moderated to -4.2% and +16.3%, respectively.
The total volume traded declined by 75.1% to 206.22 million units, valued at NGN3.92 billion, and exchanged in 5,053 deals. TRANSCORP was the most traded stock by volume at NGN38.53 million, while MTNN was the most traded stock by value at NGN2.03 billion.
Analysing by sectors, the Consumer Goods (-3.8%), Banking (-3.5%), Insurance (-3.2%), and Industrial Goods (-0.5%) indices mirrored the general market sentiment, while the Oil & Gas (+0.6%) index was the sole gainer of the day.
As measured by market breadth, market sentiment was negative (0.4x) as 26 tickers lost relative to 10 gainers. LASACO (-10.0%) and STANBIC (-10.0%) recorded the significant losses of the day, while UPDCREIT (+9.2%) and RTBRISCOE (+8.6%) topped the gainers’ list.
CURRENCY
The naira appreciated by 0.9% to NGN426.20/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 NGN413.40 billion.
Trading in the Treasury bills secondary market was bearish, as the average yield expanded by 37bps to 7.6%. Across the curve, the average yield expanded at the short (+50bps) and mid (+123bps) segments due to sell-offs of the 14DTM (+302bps) and 119DTM (+369bps) bills, but closed flat at the long end. Similarly, the average yield expanded by 70bps to 9.6% in the OMO segment.
The Treasury bond secondary market remained bearish as the average yield expanded by 2bps to 11.9%. Across the benchmark curve, the average yield closed flat at the short and mid segments, but expanded at the long (+5bps) end as investors sold off the MAR-2050 (+34bps) bond.
