August 3, 2022/Cordros Report
EQUITIES
The local bourse reversed yesterday’s gain as late profit-taking activities witnessed in BUACEMENT (-2.2%) undermined the market’s performance. Precisely, the All-Share Index declined by 0.1% to 50,594.97 points. Consequently, the Month-to-Date and Year-to-Date returns settled at +0.5% and +18.4%, respectively.
The total volume traded declined by 6.2% to 121.16 million units, valued at NGN4.17 billion, and exchanged in 4,369 deals. MTNN was the most traded stock by volume and value at NGN10.41 million and NGN2.24 billion, respectively.
Analysing by sectors, the Industrial Goods (-0.5%), Banking (-0.3%), and Insurance (-0.1%) indices closed in the red, while Consumer Goods (+0.4%), and Oil & Gas (+0.3%) indices advanced.
As measured by market breadth, market sentiment was positive (1.3x) as 19 tickers gained relative to 15 losers. LASACO (+10.0%) and HONYFLOUR (+9.7%) recorded the most significant gains of the day, while LEARNAFRCA (-10.0%) and UPL (-9.8%) topped the losers’ list.
CURRENCY
The naira appreciated by 0.3% to NGN429.20/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate was unchanged at 15.0%, in the absence of any significant funding pressure on the system.
The Treasury bills secondary market traded quietly in today’s session, as the average yield was unchanged at 7.7%. Similarly, the average yield was flat at 9.6% in the OMO segment.
Proceedings at the Treasury bond secondary market continued on a bearish note, as the average yield expanded by 8bps to 12.2%. Across the benchmark curve, the average yield expanded at the short (+1bp), mid (+3bps), and long (+15bps) segments, as investors sold off the JAN-2026 (+5bps), APR-2032 (+8bps), and APR-2037 (+89bps) bonds, respectively.
