September 5, 2022/Cordros Report
EQUITIES
Activities in the domestic equities market resumed the week on a sour note, as investors took profits off WAPCO (-4.2%), ZENITHBANK (-2.3%), and STANBIC (-3.0%). Thus, the All-Share Index settled lower by 0.1% at 49,991.41 points. Accordingly, the Month-to-Date and Year-to-Date returns settled at +0.3% and +17.0%, respectively.
The total volume traded declined by 16.3% to 200.92 million units, valued at NGN1.45 billion, and exchanged in 3,976 deals. STERLNBANK was the most traded stock by volume at 90.90 million units, while MTNN was the most traded stock by value at NGN252.47 million.
Analysing by sectors, the Banking (-0.9%), Industrial Goods (-0.4%), and Insurance (-0.1%) indices declined, while the Consumer Goods (+0.6%) index advanced. The Oil & Gas index closed flat
As measured by market breadth, market sentiment was negative (0.8x) as 15 tickers lost relative to 12 gainers. ABCTRANS (-9.7%) and NGXGROUP (-4.6%) topped the losers’ list, while CHAMS (+7.7%) and FLOURMILL (+4.5%) recorded the most significant gains of the day.
CURRENCY
The naira depreciated by 0.8% to NGN434.75/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The naira depreciated by 0.8% to NGN434.75/USD at the I&E window.
The overnight lending rate expanded by 67bps to 13.2%, in the absence of any significant funding pressure on the system.
Trading in the NTB secondary market was mixed, albeit with a bullish tilt, as the average yield pared by 1bp to 7.7%. Across the curve, the average yield contracted at the short (-1bp) and mid (-1bp) segments following mild interests in the 80DTM (-1bp) and 157DTM (-1bp) bills, respectively. The average yield was flat at the long end. Elsewhere, the average yield contracted by 1bp to 11.1% in the OMO segment.
The Treasury bond secondary market closed on a bearish note, as the average yield expanded by 18bps to 12.9%. Across the benchmark curve, the average yield expanded at the short (+55bps) and long (+2bps) ends as investors took profits off the APR-2023 (+291bps) and APR-2037 (+23bps) bonds, respectively. Conversely, the average yield was unchanged at the mid segment.
