September 7, 2022/Cordros Report
EQUITIES
Trading in the local bourse remained bearish as investors took profits off FCMB (-8.0%) stock. Thus, the All-Share Index shed 2bps to close at 49,635.76 points. Consequently, the Month-to-date and Year-to-Date returns were unchanged at -0.4% and +16.2%, respectively.
The total volume traded declined by 7.2% to 128.94 million units, valued at NGN1.67 billion, and exchanged in 3,426 deals. STERLNBANK was the most traded stock by volume at 26.85 million units, while MTNN was the most traded stock by value at NGN495.50 million.
Analysing by sectors, the Oil & Gas (-0.3%), and Banking (-0.3%) indices declined, while the Consumer Goods (+0.1%) index was the sole gainer of the day. The Insurance and Industrial Goods indices closed flat.
As measured by market breadth, market sentiment was positive (1.2x) as 15 tickers gained relative to 13 losers. PZ (+9.8%) and NPFMCRFBK (+4.6%) recorded the most significant gains of the day, while CHAMS (-10.0%) and FCMB (-8.0%) topped the losers’ list.
CURRENCY
The naira depreciated by 0.1% to NGN436.50/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 67bps to 13.5%, in the absence of any significant funding pressure on the system.
Trading in the Treasury bills secondary market was muted, as participants anticipated the outcome of today’s PMA. Thus, the average yield was flat at 7.7%. Similarly, the average yield remained at 10.8% in the OMO segment.
The Treasury bond secondary market traded quietly, as the average yield was unchanged at 12.9%. Across the benchmark curve, the average yield expanded at the short (+1bp) end due to profit-taking on the MAR-2024 (+7bps) bond. The average yield closed flat at the mid and long segments.
