December 7, 2022/Cordros Report
EQUITIES
The local bourse edged higher following buying interests in NB (+4.6%) and NESTLE (+1.7%). Thus, the All-Share Index notched a 0.1% gain to close at 48,426.49 points. Consequently, the Month-to-Date and Year-to-Date gains settled at +1.6% and +13.4%, respectively.
The total volume traded declined by 20.8% to 146.21 million units, valued at NGN3.36 billion, and exchanged in 2,810 deals. FBNH was the most traded stock by volume at 59.27 million units, while GEREGU was the most traded stock by value at NGN1.53 billion.
Analysing by sectors, the Insurance (-0.6%), Banking (-0.2%), and Oil & Gas (-0.1%) indices declined, while the Industrial Goods index closed flat. The Consumer Goods (+0.9%) index was the sole gainer of the day.
As measured by market breadth, market sentiment was negative (0.6x) as 17 tickers lost relative to 11 gainers. SCOA (-9.4%) and UNITYBNK (-7.0%) topped the losers’ list, while THOMASWY (+10.0%) and HONYFLOUR (+6.1%) recorded the highest gains of the day.
CURRENCY
The naira was flat at NGN445.87/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 50bps to 10.4%, in the absence of any significant inflow into the system
Trading in the NTB secondary market was quiet, as the average yield remained 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 buying interest in the 329DTM (-1bp) bill. Similarly, the average yield was unchanged at 10.1% in the OMO segment.
Proceedings in the Treasury bond secondary market were bullish, as the average yield dipped by 3bps to 14.2%. Across the benchmark curve, the average yield contracted at the short (-2bps) and long (-5bps) ends as investors demanded the MAR-2027 (-7bps), and MAR-2035 (-33bps) bonds, respectively. The average yield closed flat at the mid segment.
