August 8, 2022/Cordros Report
EQUITIES
Activities in the domestic equities market resumed the week on a sour note, as investors took profits off MTNN (-4.9%). Thus, the All-Share Index settled lower by 0.5% at 50,489.73 points. Accordingly, the Month-to-Date and Year-to-Date returns settled at +0.2% and +18.2%, respectively.
The total volume traded increased by 39.2% to 207.20 million units, valued at NGN2.12 billion, and exchanged in 4,234 deals. FBNH was the most traded stock by volume and value at 74.63 million units and NGN820. 15 million, respectively.
Analysing by sectors, the Insurance (+1.4%), and Consumer Goods (+0.2%) indices recorded gains, while the Banking (-1.1%) index declined. The Oil & Gas and Industrial Goods indices closed flat
As measured by market breadth, market sentiment was negative (0.8x) as 12 tickers lost relative to 9 gainers. RTBRISCOE (-10.0%) and ELLAHLAKES (-9.6%) topped the losers’ list, while HONYFLOUR (+5.7%) and CORNERST (+5.6%) recorded the most significant gains of the day.
CURRENCY
The naira depreciated by 0.7% to NGN431.00/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate remained unchanged at 15.0%, as system liquidity closed in a net short position at NGN78.94 billion.
Trading in the Nigerian Treasury Bills secondary market was mixed, albeit with a bullish tilt as the average yield pared by 1bp to 7.6%. Across the curve, the average yield contracted at the short (-1bp) and mid (-1bp) segments due to buying interests on the 52DTM (-1bp) and 108DTM (-1bp) bills, respectively; but was flat at the long end. Similarly, the average yield contracted by 3bps to 11.1% in the OMO segment.
The Treasury bond secondary market traded with bearish sentiments, as the average yield expanded by 15bps to 12.4%. Across the benchmark curve, the average yield expanded at the short (+31bps) and mid (+22bps) segments as investors sold off the MAR-2027 (+60bps) and APR-2029 (+41bps) bonds, respectively. Conversely, the average yield closed flat at the long end.
