August 25, 2022/Cordros Report

EQUITIES  

Bullish sentiments persisted in the domestic bourse as buying interest in AIRTELAFRI (+7.1%) and BUAFOODS (+3.3%) drove the All-Share Index 2.0% higher to close at 49,661.87 points. Accordingly, the Month-to-Date loss moderated to -1.4%, while the Year-to-Date gain increased to +16.3%.  

The total volume traded increased by 35.2% to 226.47 million units, valued at NGN2.76 billion, and exchanged in 3,515 deals. MBENEFIT was the most traded stock by volume at 74.54 million units, while MTNN was the most traded stock by value at NGN505.04 million.  

Analysing by sectors, the Consumer Goods (+0.8%), Oil & Gas (+0.7%), Insurance (+0.4%), and Banking (+0.2%) indices recorded gains, while the Industrial Goods index closed flat.  

As measured by market breadth, market sentiment was positive (1.6x) as 18 tickers gained relative to 11 losers. CWG (+10.0%) and LEARNAFRCA (+9.8%) topped the gainers’ list, while MBENEFIT (-9.7%) and HONYFLOUR (-8.4%) recorded the highest losses of the day.  

CURRENCY  

The naira appreciated by 0.1% to NGN430.67/USD at the I&E window.    

MONEY MARKET & FIXED INCOME  

The overnight lending rate was flat at 15.0%, as the system liquidity remained depressed, closing at a net short position (NGN223.57 billion).  

Trading in the NTB secondary market was quiet, as the average yield remained at 7.8%. Similarly, the average yield was flat at 11.1% in the OMO segment.  

The Treasury bond secondary market closed on a bearish note, as the average yield expanded by 2bps to 12.7%. Across the benchmark curve, the average yield was flat at the short and mid segments, but expanded at the long (+5bps) end following profit-taking activities on the MAR-2036 (+35bps) bond.