October 20, 2022/Cordros Report
EQUITIES
The domestic equities market traded marginally higher in today’s session as the All-Share Index notched a 3bps gain to 44,332.21 points. Today’s performance was supported by bargain-hunting in STANBIC (+3.6%). Accordingly, the Month-to-Date and Year-to-Date returns were unchanged at -9.6% and +3.8%, respectively.
The total volume of trades declined by 27.9% to 119.22 million units, valued at NGN3.20 billion, and exchanged in 2,809 deals. FIDELITYBK was the most traded stock by volume at 39.36 million units, while AIRTELAFRI was the most traded stock by value at NGN1.76 billion.
Sectoral performance was mixed, as the Insurance (+2.2%), Consumer Goods (+2.0%), and Industrial Goods (+0.1%) indices recorded gains, while the Banking (-0.8%) and Oil & Gas (-0.4%) indices declined.
As measured by market breadth, market sentiment was negative (0.9x), as 17 tickers lost relative to 16 gainers. BETAGLAS (-10.0%) and ALEX (-9.7%) recorded the most significant losses of the day, while CWG (+9.6%) and UPDCREIT (+8.9%) topped the gainers’ list.
CURRENCY
The naira appreciated by 0.1% to NGN441.13/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 17bps to 16.3%, in the absence of any significant inflow into the system.
Activities in the Treasury bills secondary market were bearish, as the average yield expanded by 20bps to 10.1%. Across the curve, the average yield was flat at the short and long ends but expanded at the mid (+43bps) segment as participants sold off the 98DTM (+300bps) bill. Elsewhere, the average was unchanged at 10.3% in the OMO segment.
The Treasury bond secondary market traded with bearish sentiments, as the average yield expanded by 14bps to 14.1%. Across the benchmark curve, the average yield expanded at the short (+16bps) and mid (+40bps) segments due to selloffs of the JAN-2026 (+38bps) and APR-2029 (+55bps) bonds, respectively. Conversely, the average yield was flat at the long end.
