September 26, 2022/Cordros Report
EQUITIES
Activities in the domestic equities market resumed the week on a positive note as the All-Share Index notched a 0.4% increase to close at 49,218.35 points. The positive performance was supported by bargain-hunting in BUACEMENT (+5.4%). Accordingly, the Month-to-Date and Year-to-Date returns settled at -1.2% and +15.2%, respectively.
The total volume of trades declined by 29.5% to 119.28 million units, valued at NGN854.76 billion, and exchanged in 3,580 deals. COURTVILLE was the most traded stock by volume at 24.36 million units, while ZENITHBANK was the most traded stock by value at NGN177.13 million.
Sectoral performance was mixed, as the Insurance (-2.6%), Consumer Goods (-0.7%), and Oil & Gas (-0.3%) indices declined, while the Industrial Goods index (+1.9%) and Banking (+0.6%) indices advanced.
As measured by market breadth, market sentiment was negative (0.6x), as 11 tickers lost relative to 17 gainers. ACADEMY (-10.0%) and NEM (-8.9%) topped the losers’ list, while MULTIVERSE (+9.9%) and FCMB (+8.0%) recorded the highest gains of the day.
CURRENCY
The naira appreciated by 0.1% to NGN436.00/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate was flat at 15.0%, as the system liquidity settled at a net long position (NGN26.59 billion).
Trading activities in the Treasury bills secondary market were mixed, albeit with a bullish tilt, as the average yield pared by 1bp to 7.4%. Across the curve, the average yield contracted at the short (-1bp) and mid (-2bps) segments due to demand for the 59DTM (-1bp) and 150DTM (-6bps) bills, respectively; the long end was flat. Similarly, the average yield contracted by 1bp to 9.4% in the OMO segment.
The Treasury bond secondary market traded with bearish sentiments, as the average yield expanded by 2bps to 12.9%. Across the benchmark curve, the average yield pared at the short (-1bp) end as investors demanded the APR-2023 (-10bps) bond, but expanded at the long (+4bps) end due to the sell-off of the APR-2049 (+21bps) bond. The average yield was flat at the mid segment.
