December 12, 2022/Cordros Report
EQUITIES
The local bourse resumed the week on a bullish note as gains in ZENITHBANK (+1.6%) and FBNH (+1.9%) offset sell-offs in STANBIC (-1.8%). As a result, the All-Share Index increased marginally by 4bps to close at 48,899.08 points. Accordingly, the Month-to-Date and Year-to-Date gains increased to +2.6% and +14.5%, respectively.
The total volume of trades increased by 134.6% to 236.59 million units, valued at NGN2.52 billion, and exchanged in 3,334 deals. ACCESSCORP was the most traded stock by volume and value at 120.98 million units and NGN1.03 billion, respectively.
Analysing by sectors, the Consumer Goods, Industrial Goods and Oil & Gas indices closed flat. Conversely, the Banking (+0.5%) index closed higher, while the Insurance (-0.6%) index recorded losses.
As measured by market breadth, market sentiment was negative (0.8x), as 10 tickers lost relative to 8 gainers. ROYALEX (-9.9%) and NEIMETH (-8.6%) recorded the most significant losses of the day, while LEARNAFRICA (+9.7%) and JAIZBANK (+9.2%) topped the gainers’ list.
CURRENCY
The naira appreciated by 0.1% to NGN446.00/USD at the I&E window
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 212bps to 16.3%, in the absence of any significant inflows to the system.
Activities in the Treasury bills secondary market were bullish, as the average yield dipped by 16bps to 8.3%. Across the curve, the average yield was flat at the short and mid segments, but contracted at the long (-42bps) end due to participants’ demand for the 350DTM (-249bps) bill. Elsewhere, the average yield pared by 1bp to 10.1% in the OMO segment.
Trading in the FGN bond secondary market was mixed, as the average yield remained at 14.0%. Across the benchmark curve, the average yield contracted at the short (-1bp) end, following the interest on the APR-2023 (-2bps) bond. Conversely, the average yield was flat at the mid and long segments.
