August 10, 2022/Cordros Report
EQUITIES
Unlike in the past two trading sessions, performance in the local bourse was positive following renewed interest in top cement player— DANGCEM (+10.0%). Precisely, the All-Share Index advanced by 1.5% to 50,075.47 points. Accordingly, the Month-to-Date and Year-to-Date returns settled at -0.6% and +17.2%, respectively.
The total volume traded increased by 98.6% to 279.22 million units, valued at NGN2.08 billion, and exchanged in 3,576 deals. JAIZBANK was the most traded stock by volume at 115.13 million units, while FBNH was the most traded stock by value at NGN431.50 million.
Performance across sectors was broadly positive, as the Industrial Goods (+4.4%), Insurance (+1.9%), Banking (+0.4%), Consumer Goods (+0.3%), and Oil & Gas (+0.1%) indices recorded gains.
As measured by market breadth, market sentiment was positive (1.9x) as 19 tickers gained relative to 10 losers. DANGCEM (+10.0%) and NEM (+9.9%) topped the gainers’ list, while WAPCO (-8.8%) and NAHCO (-8.6%) recorded the most significant losses of the day.
CURRENCY
The naira depreciated by 0.1% to NGN429.00/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 17bps to 14.8%, as system liquidity settled at NGN19.53 billion.
The Treasury bills secondary market traded with bearish sentiments, as the average yield expanded by 17bps to 7.8%. Across the curve, the average yield was flat at the short and long ends; but expanded at the mid (+98bps) segment following profit taking on the 183DTM (+295bps) bill. Elsewhere, the average yield contracted by 60bps to 10.5% in the OMO segment.
Activities in the Treasury bond secondary market were bearish, as the average yield expanded by 17bps to 12.5%. Across the benchmark curve, the average yield expanded at the short (+39bps) and mid (+18bps) segments as investors sold off the APR-2023 (+167bps) and FEB-2028 (+72bps) bonds, respectively. Conversely, the average yield closed flat at the long end.
