November 24, 2022/Cordros Report
EQUITIES
Trading in the local bourse sustained the week’s positive momentum following bargain hunting in AIRTELAFRI (+6.3%) and BUAFOODS (+6.1%) stocks. Thus, the All-Share Index advanced by 0.8% to 46,604.94 points. Accordingly, the Month-to-Date and Year-to-Date returns printed +6.3% and +9.1%, respectively.
The total volume of trades declined by 26.2% to 136.00 million units, valued at NGN2.17 billion, and exchanged in 3,434 deals. STERLNBANK was the most traded stock by volume at 24.25 million units, while AIRTELAFRI was the most traded stock by value at NGN791.28 million.
Sectoral performance was broadly negative, as the Consumer Goods (-3.7%), Oil & Gas (-1.9%), Banking (-1.4%), Industrial Goods (-0.4%) and Insurance (-0.1%) indices closed in the red.
As measured by market breadth, market sentiment was negative (0.6x), as 23 tickers lost relative to 14 gainers. NESTLE (-10.0%) and REDSTAREX (-10.0%) topped the losers’ list, while MANSARD (+8.6%) and NB (+6.8%) recorded the highest gains of the day.
CURRENCY
The naira appreciated by 0.2% to NGN445.00/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 738bps to 9.9%, in the absence of any significant inflow into the system.
Activities in the Treasury bills secondary market were mixed, albeit with a bearish tilt, as the average yield inched higher by 1bp to 10.6%. Across the curve, the average yield was flat at the short and long ends but expanded at the mid (+2bps) segment following the sell-off of the 112DTM (+17bps) bill. Elsewhere, the average yield remained at 10.2% in the OMO segment.
Trading in the FGN bond secondary market was bullish, as the average yield contracted by 7bps to 14.4%. Across the benchmark curve, the average yield declined at the short (-14bps) and long (-4bps) ends as investors demanded the MAR-2024 (-82bps), and JUL-2045 (-14bps) bonds, respectively.
