October 12, 2022/Cordros Report
EQUITIES
The local bourse reversed yesterday’s gains, closing lower by 0.1% as investors sold off FBNH (-2.1%). Thus, the All-Share Index settled at 47,531.84 points. Consequently, the Month-to-Date and Year-to-Date returns settled at -3.0% and +11.3%, respectively.
The total volume traded increased by 23.5% to 155.18 million units, valued at NGN3.66 billion, and exchanged in 3,797 deals. MBENEFIT was the most traded stock by volume at 41.92 million units, while DANGCEM was the most traded stock by value at NGN2.06 billion.
Sectoral performance was mixed, as the Insurance (-0.5%) and Banking (-0.3%) indices declined, while the Oil & Gas (+0.4%) index advanced. The Consumer Goods and Industrial Goods indices closed flat.
As measured by market breadth, market sentiment was negative (0.5x), as 17 tickers lost relative to 9 gainers. GSPECPLC (-9.8%) and HONYFLOUR (-9.8%) topped the losers’ list, while REDSTAREX (+8.5%) and MAYBAKER (+3.7%). recorded the most significant gains of the day.
CURRENCY
The naira appreciated by 0.1% to NGN440.67/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate was flat at 16.75%, as the system liquidity closed lower at a net short position (NGN63.07 billion).
Activities in the Treasury bills secondary market were quiet, as participants shifted focus to the outcome of today’s PMA. Thus, the average yield stayed flat at 7.3%. Similarly, the average yield was unchanged at 10.3% in the OMO segment.
The Treasury bond secondary market was mixed, albeit with a bullish tilt as the average yield contracted by 1bp to 13.5%. Across the benchmark curve, the average yield dipped at the short (-8bps) end due to the demand for the MAR-2025 (-34bps) bond but expanded at the mid (+5bps) and long (+3bps) segments following selloffs of the APR-2032 (+11bps) and JUL-2034 (+19bps) bonds, respectively.
