August 2, 2022/Cordros Report
EQUITIES
Bullish sentiments returned to the Nigerian equities market as the All-Share Index advanced by 1.4% to close at 50,626.04 points. Precisely bargain hunting in MTNN (+7.5%) stocks supported today’s market performance. Accordingly, the Month-to-Date and Year-to-Date returns rose to +0.5% and +18.5%, respectively.
The total volume traded declined by 26.6% to 129.17 million units, valued at NGN2.86 billion, and exchanged in 4,706 deals. FBNH was the most traded stock by volume at 14.59 million units, while NESTLE was the most traded stock by value at NGN748.09 million.
On sectors, the Consumer Goods (+1.1%) and Banking (+0.6%) indices advanced, while the Insurance, Industry Goods and Oil & Gas indices closed flat.
As measured by market breadth, market sentiment was negative (2.1x) as 17 tickers gained relative to 8 losers. HONYFLOUR (+9.7%) and JAIZBANK (+9.5%) recorded the highest gains of the day, while WAPIC (-9.8%) and CHAMS (-8.0%) topped the losers’ list.
CURRENCY
The naira depreciated by 0.4% to NGN430.67/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 450bps to 15.0%, in the absence of any funding pressure on the system.
Trading in the Treasury bills secondary market was quiet, as the average yield was unchanged at 7.7%. Elsewhere, the average yield contracted by 3bps to 9.6% in the OMO segment.
The Treasury bond secondary market traded with bearish sentiments, as the average yield expanded by 17bps to 12.1%. Across the benchmark curve, the average yield expanded at the short (+5bps), mid (+19bps) and long (+24bps) segments, following profit-taking on the MAR-2027 (+17bps), FEB-2028 (+59bps) and JUL-2045 (+148bps) bonds respectively.
