November 16, 2022/InvestmentOne Report
EQUITIES
In today’s trading session, the Nigerian equities market reversed the week’s losses and traded positively following bargain-hunting in ZENITHBANK (+8.5%) and GTCO (+6.6%). As a result, the All-Share Index notched a 0.6% gain to close at 44,050.44 points. Consequently, the Month-to-Date and Year-to-Date returns increased to +0.5% and +3.1%, respectively.
The total volume traded increased by 54.2% to 159.44 million units, valued at NGN2.86 billion, and exchanged in 3,039 deals. FIDELITYBK was the most traded stock by volume at 27.95 million units, while AIRTELAFRI was the most traded stock by value at NGN626.62 million
Analysing by sectors, the Banking (+4.2%), Insurance (+0.8%), and Industrial Goods (+0.4%) indices recorded gains, while the Oil & Gas (-0.4%) and Consumer Goods (-0.2%) indices closed in the red.
As measured by market breadth, market sentiment was negative (0.9x) as 22 stocks lost relative to 20 gainers. ETERNA (-10.0%) and GUINNESS (-10.0%) recorded the highest losses of the day, while CORNERST (+10.0%) and MRS (+9.7%) topped the gainers’ list.
CURRENCY
The naira was flat at NGN446.67/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate was unchanged at 16.5%, as the system liquidity closed in a net long position (NGN131.44 billion).
Activities in the Treasury bills secondary market were bearish, as the average yield expanded by 11bps to 10.7%. Across the curve, the average yield was flat at the short and long ends but expanded at the mid (+21bps) segment following the sell-off of the 99DTM (+168bps) bill. Elsewhere, the average yield remained at 10.2% in the OMO segment.
The Treasury bonds secondary market traded with bullish sentiments, as the average yield dipped by 6bps to 14.4%. Across the benchmark curve, the average yield closed flat at the short end but contracted at the mid (-9bps) and long (-11bps) segments following demand for the APR-2029 (-10bps) and MAR-2050 (-22bps) bonds, respectively.
