November 28, 2022/Cordros Report
EQUITIES
The domestic equities market started the week on a bearish note, following profit-taking activities in BUACEMENT (-2.8%). As a result, the All-Share Index dipped by 0.3% to 47,436.45 points. Accordingly, the Month-to-Date and Year-to-Date returns printed +8.2% and +11.1%, respectively.
The total volume traded increased by 182.2% to 279.28 million units, valued at NGN1.56 billion, and exchanged in 3,781 deals. REGALINS was the most traded stock by volume at 97.63 million units, while BUACEMENT was the most traded stock by value at NGN268.67 million.
Sectoral performance was mixed, as the Insurance (+1.5%) and Oil & Gas (+0.1%) indices printed gains, while the Industrial Goods (-1.3%) and Banking (-0.2%) indices declined. The Consumer Goods index closed flat.
As measured by market breadth, market sentiment was flat (1.0x) as an equal number of tickers (15) gained and lost. PRESTIGE (+9.3%) and NEM (+9.2%) recorded the most significant gains of the day, while BETAGLAS (-9.9%) and SCOA (-9.4%) topped the losers’ list.
CURRENCY
The naira appreciated by 0.4% to NGN444.70/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 150bps to 14.1%, as the system liquidity settled lower at a net long position (NGN43.19 billion).
Activities in the Treasury bills secondary market were bullish, as the average yield contracted by 17bps to 10.5%. Across the curve, the average yield decreased at the short (-1bp), mid (-32bps), and long (-1bp) segments as participants demanded the 87DTM (-1bp), 108DTM (-223bps), and 332DTM (-2bps) bills, respectively. Similarly, the average yield pared by 1bp to 10.1% in the OMO segment.
Elsewhere, sentiments in the FGN bonds secondary market were bearish, as the average yield expanded by 2bps to 14.4%. Across the benchmark curve, the average yield expanded at the short (+1bp), mid (+4bps), and long (+2bps) segments following selloffs of the APR-2023 (+7bps), APR-2032 (+8bps), and JUL-2034 (+15bps) bonds, respectively.
