August 23, 2022/Cordros Report

EQUITIES

Sentiments remained bearish in the domestic bourse as investors sold off DANGCEM (-5.3%) stock. As a result, the NGX ASI closed lower by 1.6% to 48,554.76 points. Accordingly, the Month-to-date loss increased to 3.6%, while the Year-to-Date gain moderated to +13.7%.  

The total volume traded increased by 66.3% to 204.15 million units, valued at NGN3.18 billion, and exchanged in 3,533 deals. MBENEFIT was the most traded stock by volume at 44.01 million units, while DANGCEM was the most traded stock by value at NGN665.74 million.  

Performance across sectors was broadly negative, as the Oil & Gas (-4.9%), Industrial Goods (-4.6%), Consumer Goods (-3.1%), and Banking (-0.1%) indices closed lower, while the Insurance (+1.8%) index recorded the sol1de gain.  

As measured by market breadth, market sentiment was negative (0.5x) as 20 tickers lost relative to 9 gainers. BUAFOODS (-9.9%) and NNFM (-9.9%) topped the losers’ list, while FTNCOCOA (+10.0%) and NEM (+10.0%) recorded the highest losses of the day.  

CURRENCY  

The naira depreciated by 0.3% to NGN430.67/USD at the I&E window.    

MONEY MARKET & FIXED INCOME  

The overnight lending rate was flat at 15.0%, as the inflow from OMO maturities (NGN43.43 billion) was not sufficient to saturate the system liquidity.  

Trading activities in the Treasury bills secondary market were muted, with market participants anticipating Wednesday’s PMA. Thus, the average yield stayed flat at 7.9%. Similarly, the average yield was flat at 11.2% in the OMO segment.  

The Treasury bond secondary market traded quietly, as the average yield was unchanged at 12.6%. Across the benchmark curve, the average yield pared at the short (-1bp) end following buying interest on the APR-2023 (-4bps) bond, but was flat at the mid and long segments.