September 19, 2022/Cordros Report
EQUITIES
Activities in the domestic equities market carried on last week’s bearish performances, as investors took profits off SEPLAT (-3.9%). Thus, the All-Share Index settled lower by 0.1% at 49,440.21 points. Accordingly, the Month-to-Date and Year-to-Date returns settled at -0.8% and +15.7%, respectively.
The total volume traded declined by 37.3% to 67.37 million units, valued at NGN1.48 billion, and exchanged in 3,386 deals. FBNH was the most traded stock by volume at 9.67 million units, while SEPLAT was the most traded stock by value at NGN615.12 million.
Analysing by sectors, the Banking (+0.3%), and Consumer Goods (+0.2%) indices recorded gains, while the Oil & Gas (-1.9%) and Insurance (-0.3%) indices closed in the red. The Industrial Goods index closed flat.
As measured by market breadth, market sentiment was flat (1.0x) as an equal number of tickers (11) gained and lost. ETRANZACT (+10.0%) and ACADEMY (+9.5%) topped the gainers’ list, while ABCTRANS (-10.0%) and UPL (-9.4%) recorded the most significant losses of the day.
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 10.2%, in the absence of any significant outflow from the system.
The Treasury bills secondary market traded with mixed sentiments, albeit with a bullish tilt, as the average yield pared by 1bp to 7.6%. Across the curve, the average yield contracted at the short (-1bp) and mid (-1bp) segments following mild interests in the 66DTM (-1bp) and 143DTM (-1bp) bills, respectively. The average yield was flat at the long end. Similarly, the average yield contracted slightly by 1bp to 10.6% in the OMO segment.
Activities in the Treasury bond secondary market were bullish as the average yield contracted by 4bps to 12.6%. Across the benchmark curve, the average yield contracted at the short (-6bps) and long (-3bps) ends as investors demanded the FEB-2028 (-34bps) and MAR-2025 (-23bps) bonds. Conversely, the average yield closed flat at the mid segment.
