October 11, 2022/Cordros Report
EQUITIES
Activities in the domestic equities market resumed the week on a positive note as the All-Share Index notched a 0.5% increase to close at 47,565.92 points. The positive performance was supported by bargain-hunting in BUACEMENT (+8.7%). Accordingly, the Month-to-Date and Year-to-Date returns settled at -3.0% and +11.4%, respectively.
The total volume of trades declined by 8.5% to 125.65 million units, valued at NGN1.90 billion, and exchanged in 4,188 deals. GTCO was the most traded stock by volume and value at 38.87 million units, and NGN659.10 million.
Sectoral performance was mixed, as the Industrial Goods (+3.2%), Banking (+0.7%), and Insurance (+0.2%) indices recorded gains, while the Oil & Gas (-2.4%) and Consumer Goods (-0.1%) indices declined.
As measured by market breadth, market sentiment was negative (0.9x), as 14 tickers lost relative to 12 gainers. UPL (-8.5%) and CADBURY (-6.9%) topped the losers’ list, while MAYBAKER (+9.8%) and IKEJAHOTEL (+9.7%) recorded the highest gains of the day.
CURRENCY
The naira depreciated by 0.5% to NGN441.17/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 50bps to 16.8%, following the inflow from OMO maturities (NGN10.00 billion).
Activities in the Treasury bills secondary market were mixed, albeit with a bullish tilt, as the average yield pared by 1bp to 7.3%. Across the curve, the average yield was flat at the short end but contracted at the mid (-1bp) and long (-1bp) segments following mild interests in the 170DTM (-1bp) and 338DTM (-1bp) bills, respectively. Similarly, the average yield contracted slightly by 1bp to 10.3% in the OMO segment.
Trading in the FGN bond secondary market was bearish, as the average yield expanded by 2bps to 13.6%. Across the benchmark curve, the average yield was flat at the short end but expanded at the mid (+5bps) and long (+3bps) segments due to selloffs of the APR-2032 (+10bps) and JUL-2034 (+18bps) bonds, respectively.
