August 22, 2022/Cordros Report
EQUITIES
Trading activities in the local bourse resumed this week on a negative note as investors took profits off ETI (-5.7%) stock. Thus, the All-Share Index shed 0.1% to close at 49,344.67 points. Consequently, the Month-to-date loss increased to 2.0%, while the Year-to-Date gain moderated to +15.5%.
The total volume traded declined by 7.2% to 122.74 million units, valued at NGN1.30 billion, and exchanged in 3,915 deals. MBENEFIT was the most traded stock by volume at 18.43 million units, while MTNN was the most traded stock by value at NGN206.42 million.
Analysing by sectors, the Banking (-0.7%), Insurance (-0.1%), and Oil & Gas (-0.1%) indices declined, while the Consumer Goods (+0.1%) index was the sole gainer of the day. The Industrial Goods index was flat.
As measured by market breadth, market sentiment was negative (0.5x) as 19 tickers lost relative to 9 gainers. FTNCOCOA (-9.1%) and LASACO (-8.7%) recorded the most significant losses of the day, while COURTVILLE (+9.1%) and HONYFLOUR (+8.7%) topped the gainers’ list.
CURRENCY
The naira depreciated by 0.1% to NGN429.43/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate was flat at 15.0%, as system liquidity closed in a net long position (NGN28.86 billion).
Activities in the Treasury bills secondary market were mixed, but with a bullish bias, as the average yield pared by 1bp to 7.9%. Across the curve, the average yield contracted at the short (-1bp) and mid (-1bp) segments following mild interests in the 94DTM (-1bp) and 171DTM (-1bp) bills, respectively; but was flat at the long end. Elsewhere, the average yield contracted by 1bp to 11.2% in the OMO segment.
The FGN bond secondary market traded on a bearish note as the average yield contracted by 13bps to 12.6%. Across the benchmark curve, the average yield contracted at the short (-45bps) end following demand for the APR-2023 (-221bps) bond, but expanded at the long (+1bp) end as investors sold off the JUL-2045 (+7bps) bond. Conversely, the average yield was flat at the mid segment.
