November 1, 2022/Cordros Report
EQUITIES
Activities in the Nigerian equities market dipped further into the bear territory as investors sold off SEPLAT (-8.3%). Thus, the All-Share Index closed 0.2% lower to 43,745.73 points. Consequently, the Year-to-Date return moderated to +2.4%.
The total volume traded increased by 7.4% to 172.87 million units, valued at NGN4.01 billion, and exchanged in 4,009 deals. ACCESSCORP was the most traded stock by volume at 24.68 million units, while SEPLAT was the most traded stock by value at NGN2.53 billion.
Sectoral performance was mixed as the Oil & Gas (-4.3%), Consumer Goods (-1.6%), and Insurance (-0.4%) indices closed lower, while the Industrial Goods (+1.3%) and Banking (+0.1%) indices gained.
As measured by market breadth, market sentiment was negative (0.7x) as 19 tickers lost relative to 13 gainers. JBERGER (-9.5%) and SEPLAT (-8.3%) recorded the most significant losses of the day, while NAHCO (+9.4%) and REGALINS (+4.4%) topped the gainers’ list.
CURRENCY
The naira depreciated by 0.7% to NGN446.00/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 533bps to 9.8%, following the inflow from OMO maturities (NGN20.00 billion).
Activities in the Treasury bills secondary market were bearish, as the average yield expanded by 9bps to 11.1%. Across the curve, the average yield was flat at the short end but contracted at the mid (-40bps) segment following demand for the 177DTM (-261bps) bill. Conversely, the average yield expanded at the long (+8bps) end due to a sell-off of the 359 DTM (+15.33ppts). Elsewhere, the average yield was flat at 10.2% in the OMO segment.
Trading in the FGN bond secondary market was bearish, as the average yield expanded by 10bps to 13.6%. Across the benchmark curve, the average yield expanded at the short (+10bps) end due to profit-taking activities on the FEB-2028 (+31bps) bond but was unchanged at the mid segment. Conversely, the average yield contracted at the long (-3bps) end as investors demanded the APR-2037 (-21bps) bond.
