October 18, 2022/Cordros Report
EQUITIES
The domestic equities market extended yesterday’s bearish performance following a loss in AIRTELAFRI (-10.0%). Thus, the All-Share Index declined by 2.2% to close at 45,366.32 points. Accordingly, the Month-to-Date loss increased to -7.5%, while the Year-to-Date gain moderated to +6.2%.
The total volume traded increased by 204.7% to 420.16 million units, valued at NGN3.62 billion, and exchanged in 3,386 deals. CWG was the most traded stock by volume at 258.79 million units, while AIRTELAFRI was the most traded stock by value at NGN1.35 billion.
Performance across sector was mixed, as the Industrial Goods (+1.4%), Banking (+1.0%), and Insurance (+0.5%) indices advanced, while the Consumer Goods (-1.1%) and Oil & Gas (-0.3%) indices closed in the red.
As measured by market breadth, market sentiment was positive (1.3x) as 18 tickers gained relative to 14 losers. UCAP (+9.7%) and REGALINS (+8.3%) recorded the most significant gains of the day, while AIRTELAFRI (-10.0%) and NB (-9.8%) topped the losers’ list.
CURRENCY
The naira was flat at NGN441.25/USD at the I&E window
MONEY MARKET & FIXED INCOME
The overnight lending rate remained at 16.5%, as the average system liquidity remained at a net short position, closing at NGN128.20 billion.
The NTB secondary market traded with bearish sentiments, as the average yield expanded by 258bps to 9.9%. Across the curve, the average yield was flat at the short end but expanded at the mid (+225bps) and long (+459bps) segments as participants sold off the 191DTM (+313bps) and 331DTM (+608bps) bills, respectively. Elsewhere, the average yield was flat at 10.3% in the OMO segment.
Activities in the Treasury bond secondary market closed on a bearish note, as the average yield expanded by 27bps to 14.0%. Across the benchmark curve, the average yields expanded at the short (+62bps) and long (+8bps) ends, following profit-taking activities on the APR-2023 (+305bps) and APR-2037 (+59bps) bonds, respectively. Conversely, the average yield was unchanged at the mid segment.
