October 27, 2022/Cordros Report
EQUITIES
The Nigerian equities market halted its three-day bullish streak as profit-taking activities in AIRTELAFRI (-2.8%) weighed on overall performance. Accordingly, the All-Share Index declined by 0.5% to 44,625.18 points. Consequently, the Month-to-Date loss increased to -9.0%, while the Year-to-Date gain moderated to +4.5%.
The total volume traded increased by 61.4% to 150.97 million units, valued at NGN1.55 billion, and exchanged in 2,905 deals. MBENEFIT was the most traded stock by volume at 47.85 million units, while AIRTELAFRI was the most traded stock by value at NGN573.53 million.
On sectoral performance, the Industrial Goods, Consumer Goods, and Oil & Gas indices closed flat, while the Insurance (-1.0%) index declined. The Banking (+1.1%) index was the sole gainer of the day.
As measured by market breadth, market sentiment was positive (1.2x) as 11 tickers gained relative to 9 losers. REGALINS (+8.7%) and SOVRENINS (+8.0%) recorded the most significant gains of the day, while PHARMDEKO (-9.8%) and LINKASSURE (-9.3%) topped the losers’ list.
CURRENCY
The naira depreciated by 0.6% to NGN444.50/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 117bps to 15.3%, following the inflow from net NTB issuance (NGN131.08 billion).
Trading in the NTB secondary market was bullish, as the average yield contracted by 16bps to 11.1%. Across the curve, the average yield closed flat at the short and long ends but dipped at the mid (-37bps) segment following buying interest in the 182DTM (-222bps) bill. Elsewhere, the average yield was unchanged at 10.2% in the OMO segment.
Similarly, the Treasury bond secondary market closed on a bullish note, as the average yield dipped by 6bps to 14.2%. Across the benchmark curve, the average yield contracted at the short (-39bps) end as investors demanded the APR-2023 (-225bps) bond, but expanded at the mid (+15bps) and long (+13bps) segments due to sell-offs of the APR-2029 (+21bps) and MAR-2035 (+85bps) bonds, respectively.
