August 24, 2022/Cordros Report

EQUITIES  

After two consecutive trading sessions of losses, the Nigerian equities market turned bullish as the All-Share Index closed 0.3% higher to 48,675.24 points. Notably, the buying interests in STANBIC (+8.9%), BUACEMENT (+1.3%), and ETI (+8.0%) stocks triggered today’s performance. Consequently, the Month-to-date loss moderated to 3.4%, while the Year-to-Date return increased to +14.0%.  

The total volume traded declined by 17.9% to 167.57 million units, valued at NGN3.37 billion, and exchanged in 3,751 deals. ACCESSCORP was the most traded stock by volume at 27.90 million units, while MTNN was the most traded stock by value at NGN725.24 million.  

Sectoral performance was broadly positive, as the Insurance (+2.2%), Banking (+0.6%), Industrial Goods (+0.5%), Oil & Gas (+0.2%), and Consumer Goods (+0.1%) indices mirrored the performance in the market.  

As measured by market breadth, market sentiment was positive (1.4x) as 15 tickers gained relative to 11 losers. NEM (+10.0%) and STANBIC (+8.9%) recorded the most significant gains of the day, while FIDSON (-9.8%) and FTNCOCOA (-9.1%) topped the losers’ list.  

CURRENCY  

The naira depreciated by 0.1% to NGN431.00/USD at the I&E window.    

MONEY MARKET & FIXED INCOME  

The overnight lending rate remained unchanged at 15.0%, following the depressed system liquidity as it closed at a net short position (NGN160.02 billion).  

The Treasury bills secondary market traded with bullish sentiments, as the average yield contracted by 4bps to 7.8%. Across the curve, the average yield dipped at the short (-10bps), and mid (-3bps) segments as market participants demanded the 92DTM (-59bps) and the 183DTM (-8bps) bills, respectively; but was flat at the long end. Elsewhere, the average yield was flat at 11.1% in the OMO segment.  

Activities in the Treasury bond secondary market turned bearish, as the average yield expanded by 3bps to 12.7%. Across the benchmark curve, the average yield expanded at the short (+19bps) end following profit-taking activities on the MAR-2025 (+99bps) bond but contracted at the long (-7bps) end as investors demanded the MAR-2050 (-21bps) bond. Conversely, the average yield was unchanged at the mid segment.