December 21, 2022/Cordros Report
EQUITIES
The domestic bourse traded marginally higher in today’s session as interest in FBNH (+3.7%) and GTCO (+1.9%) triggered a 0.1% increase in the benchmark index. Consequently, the All-Share Index closed at 49,475.43 points, with the Month-to-Date and Year-to-Date returns increasing to +3.8% and +15.8%, respectively.
The total volume of trades increased by 310.8% to 411.15 million units, valued at NGN6.35 million, and exchanged in 2,992 deals. UPDCREIT was the most traded stock by volume at 245.33 million units, while GEREGU was the most traded stock by value at NGN2.63 billion.
Sectoral performance was mixed, as the Banking (+0.2%), Oil & Gas (+0.1%), and Consumer Goods (-0.1%) indices advanced, while the Industrial Goods index closed flat. The Insurance (-0.1%) index was the sole loser of the day.
As measured by market breadth, market sentiment was positive (2.3x), as 21 tickers gained relative to 9 losers. UPL (+9.8%) and THOMASWY (+9.7%) topped the gainers’ list, while MBENEFIT (-3.5%) and FTNCOCOA (-3.3%) recorded the most significant losses of the day.
CURRENCY
The naira depreciated by 0.8% to close at NGN456.33/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 38bps to 16.8%, in the absence of any significant funding pressure on the system.
Activities in the Nigerian Treasury bills secondary market were bullish, as the average yield contracted by 259bps to 5.6%. Across the curve, the average yield contracted at the short (-167bps), mid (-269 bps), and long (-339bps) segments as investors demanded the 85DTM (-225bps), 155DTM (-346bps), and 323DTM (-405bps) bills, respectively. Similarly, the average yield contracted by 315bps to 6.9% in the OMO segment.
Proceedings in the Treasury bonds secondary market were bullish, as the average yield contracted by 20bps to 13.1%. Across the benchmark curve, the average yield contracted at the short (-48bps), and long (-6bps) ends following buying interests in the APR-2023 (-251bps), and MAR-2036 (-21bps) bonds, respectively. The average yield remained flat at the mid segment.
