October 25, 2022/Cordros Report
EQUITIES
Bullish sentiments persisted in the Nigerian equities market as the NGX ASI advanced by 0.7% to 44,788.14 points. Today’s performance was supported by buying interest in BUACEMENT (+10.0%). Accordingly, the Month-to-Date loss moderated to -8.6%, while the Year-to-Date gain rose to +4.9%.
The total volume traded increased by 120.1% to 159.21 million units, valued at NGN2.73 billion, and exchanged in 3,290 deals. MBENEFIT was the most traded stock by volume at 47.43 million units, while AIRTELAFRI was the most traded stock by value at NGN1.01 billion.
On sectoral performance, the Insurance (-0.2%), Oil & Gas (-0.2%), and Consumer Goods (-0.1%) indices declined, while the Industrial Goods (+4.0%) and Banking (+0.5%) indices posted gains.
As measured by market breadth, market sentiment was negative (0.4x) as 19 tickers lost relative to 7 gainers. ROYALEX (-9.6%) and MULTIVERSE (-8.5%) recorded the most significant losses of the day, while BUACEMENT (+10.0%) and JAIZBANK (+9.0%) topped the gainers’ list.
CURRENCY
The naira depreciated by 0.1% to NGN441.67/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 1bp to 16.5%, despite the inflow from OMO maturities (NGN29.67 billion).
Activities in the Treasury bills secondary market were largely bearish, as the average yield expanded by 103bps to 11.1%. Across the curve, most of the day’s activity was witnessed at the short (+482bps) end as market participants sold off the 16DTM (+725bps) bill. Conversely, the average yield closed flat at the mid and long segments. Elsewhere, the average yield was unchanged at 10.2% in the OMO segment.
Trading in the FGN bond secondary market was bearish, as the average yield expanded by 15bps to 14.2%. Across the benchmark curve, the average yield was flat at the short and mid segments but expanded at the long (+35bps) end due to profit-taking on the APR-2049 (+126bps) bond.
