December 6, 2022/Cordros Report
EQUITIES
The Nigerian equities market extended yesterday’s positive momentum as sustained interest in BUACEMENT (+2.5%) supported market performance. Thus, the All-Share Index advanced by 0.2% to 48,366.69 points. Accordingly, the Month-to-Date and Year-to-Date returns printed +1.5% and +13.2%, respectively.
The total volume traded declined by 71.4% to 184.66 million units, valued at NGN3.57 billion, and exchanged in 3,189 deals. FBNH was the most traded stock by volume at 66.11 million units, while GEREGU was the most traded stock by value at NGN1.75 million.
Sectoral Performance was mixed, as the Industrial Goods (+1.2%), Insurance (+0.2%), and Consumer Goods (+0.1%) indices advanced, while the Oil & Gas (-0.4%) index declined. The Banking index closed flat.
As measured by market breadth, market sentiment was positive (1.3x) as 16 tickers gained relative to 12 losers. HONYFLOUR (+8.1%) and CHAMPION (+7.1%) recorded the most significant gains of the day, while WEMABANK (-6.1%) and FTNCOCOA (-3.3%) topped the losers’ list.
CURRENCY
The naira depreciated by 0.1% to NGN445.80/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 188bps to 10.9%, in the absence of any significant inflow into the system.
The Treasury bills secondary market traded quietly, as participants anticipated tomorrow’s PMA. Thus, the NTB average yield was unchanged at 11.0%, Across the curve, the average yield closed flat at the short and mid segments but pared at the long (-1bp) end, following demand for the 329DTM (-1bp) bill. Similarly, the average yield was unchanged at 10.1% in the OMO segment.
The Treasury bond secondary market traded with mixed sentiments, albeit with a bullish tilt, as the average yield inched higher by 1bp to 14.3%. Across the benchmark curve, the average yield contracted at the short (-1bp) end as investors demanded the APR-2023 (-4bps) bond but expanded at the mid (+7bps) segment due to profit-taking activities on the APR-2029 (+9bps) bond. The average yield was flat at the long end.
