October 24, 2022/Cordros Report
EQUITIES
Trading activities in the local bourse resumed the week on a positive note, as bargain-hunting in MTNN (+1.3%) supported market performance. Thus, the All-Share Index inched higher by 0.2% to close at 44,461.63 points. Consequently, the Month-to-Date and Year-to-Date returns printed -9.3% and +4.1%, respectively.
The total volume of trades declined by 23.9% to 72.33 million units, valued at NGN2.17 billion, and exchanged in 2,887 deals. TRANSCORP was the most traded stock by volume at 11.35 million units, while AIRTELAFRI was the most traded stock by value at NGN1.49 billion.
Sectoral performance was broadly negative, as the Insurance (-1.6%), Oil & Gas (-0.4%), Banking (-0.4%), and Consumer Goods (-0.3%) indices declined, while the Industrial Goods (+0.2%) index was the sole gainer of the day.
As measured by market breadth, market sentiment was negative (0.5x), as 17 tickers lost relative to 8 gainers. UNILEVER (-10.0%) and NEM (-9.5%) topped the losers’ list, while REDSTAREX (+8.2%) and BETAGLAS (+5.9%) recorded the highest gains of the day.
CURRENCY
The naira depreciated by 0.1% to NGN441.38/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate was unchanged at 16.5%, in the absence of any significant inflow into the system.
The NTB secondary market traded with bullish sentiments, as the average yield dipped by 20bps to 10.1%. Across the curve, the average yield contracted at the short (-1bp), mid (-1bp), and long (-53bps) segments following interests on the 94DTM (-1bp), 185DTM (-1bp), and 325DTM (-261bps) bills, respectively. Elsewhere, the average yield pared by 1bp to 10.2% in the OMO segment.
Trading in the Treasury bond secondary market was bullish, as the average yield contracted by 2bps to 14.1%. Across the benchmark curve, the average yield declined at the short (-5bps) end as investors demanded the JAN-2026 (-15bps) bond. The average yield closed flat at the mid and long segments.
