December 19, 2022/Cordros Report
EQUITIES
Activities in the domestic equities market resumed the week on a positive note as the All-Share Index notched a 0.2% increase to close at 49,414.96 points. The positive performance was supported by bargain-hunting in BUAFOODS (+2.5%) and GTCO (+3.4%) stocks. Consequently, the Month-to-Date and Year-to-Date returns settled at +3.7% and +15.7%, respectively.
The total volume of trades declined by 26.0% to 76.75 million units, valued at NGN1.33 billion, and exchanged in 3,262 deals. GTCO was the most traded stock by volume and value at 16.61 million units, and NGN352.21 million, respectively.
Sectoral performance was mixed, as the Consumer Goods (+1.0%), and Banking (+0.7%) indices advanced, while the Industrial Goods and Oil & Gas indices closed flat. The Insurance (-0.1%) index was the sole loser of the day.
As measured by market breadth, market sentiment was positive (1.3x), as 13 tickers gained relative to 10 losers. THOMASWY (+8.8%) and INTBREW (+5.8%) topped the gainers’ list, while PZ (-7.3%) and CHAMS (-4.4%) recorded the highest losses of the day.
CURRENCY
The naira closed flat at NGN451.50/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 25bps to 10.3%, in the absence of any significant funding pressure on the system.
Activities in the Treasury bills secondary market were bullish, as the average yield contracted by 2bps to 8.2%. Across the curve, the average yield contracted at the short (-3bp) and long (-1bp) ends following mild interests in the 38DTM (-15bps) and 325DTM (-2bps) bills, respectively; but closed flat at the mid segment. Similarly, the average yield contracted slightly by 1bp to 10.1% in the OMO segment.
Trading in the FGN bond secondary market was mixed, albeit with a bearish tilt, as the average yield inched higher by 1bp to 13.3%. Across the benchmark curve, the average yield was flat at the short and mid segments but expanded at the long (+2bps) end due to selloffs of the APR-2037 (+11bps) bond.
