December 8, 2022/Cordros Report
EQUITIES
The domestic equities market reversed yesterday’s gain, as investors sold off MTNN (-2.3%). Precisely, the All-Share Index declined by 0.1% to 48,365.14 points. Accordingly, the Month-to-Date and Year-to-Date gains moderated to +1.5%, and +13.2%, respectively.
The total volume traded increased by 1.3% to 148.16 million units, valued at NGN2.98 billion, and exchanged in 3,391 deals. ETI was the most traded stock by volume at 26.36 million units, while MTNN was the most traded stock by value at NGN1.19 billion.
Sectoral performance was mixed, as the Industrial Goods (+1.1%), and Banking (+0.5%) indices advanced, while the Insurance (-0.5%) index declined. The Oil & Gas and Consumer Goods indices closed flat.
As measured by market breadth, market sentiment was positive (1.5x) as 15 tickers gained relative to 10 losers. CHAMS (+9.1%) and RTBRISCOE (+7.7%) topped the gainers’ list, while CAPHOTEL (-9.8%) and HONYFLOUR (-9.1%) recorded the most significant losses of the day.
CURRENCY
The naira closed flat at NGN446.00/USD at the I&E window
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 63bps to 16.5%, in the absence of any significant inflows into the system.
The Treasury bills secondary market traded with bullish sentiments, as the average yield contracted by 250bps to 8.5%. Across the curve, the average yield dipped at the short (-407bps), mid (-149bps) and long (-246bps) segments as market participants demanded the 59DTM (-632bps), 112DTM (-292bps), and the 273DTM (-375bps) bills, respectively. Elsewhere, the average yield was flat at 10.1% in the OMO segment.
Trading in the FGN bond secondary market was bullish, as the average yield contracted by 26bps to 14.0%. Across the benchmark curve, the average yield contracted at the short (-64bps) and long (-3bps) ends following buying interest in the APR-2023 (-318bps), and MAR-2036 (-23bps) bonds, respectively. The average yield closed flat at the mid segment.
