January 3, 2022/Cordros Report
EQUITIES
The Nigerian equities market commenced the first trading session of the year on a bullish note, following bargain hunting in BUAFOODS (+10.0%). Thus, the All-Share Index advanced by 0.7% to 51,595.66 points. Accordingly, the Year-to-Date return printed +0.7%.
The total volume traded declined by 63.9% to 321.67 million units, valued at NGN4.35 billion, and exchanged in 4,122 deals. FBNH was the most traded stock by volume and value at 207.62 million units, and NGN2.47 billion, respectively.
Analysing by sectors, the Consumer Goods (+3.6%), Banking (+2.6%), and Insurance (+2.6%) indices advanced, while the Industrial Goods and Oil & Gas indices closed flat.
As measured by market breadth, market sentiment was positive (2.4x) as 22 tickers gained relative to 9 losers. BUAFOODS (+10.0%) and JOHNHOLT (+9.6%) recorded the most significant gains of the day, while CWG (-8.9%) and FCMB (-8.8%) topped the losers’ list.
CURRENCY
The naira appreciated by 0.1% to NGN461.00/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 150bps to 9.8%, following inflows from OMO maturities (NGN10.00 billion).
The Treasury bill secondary market closed with bullish sentiments, as the average yield contracted by 8bps to 5.3%. Across the curve, the average yield contracted at short (-21bps), and long (-1bp) ends following buying interests in the 86DTM (-127bps) and 324DTM (-1bp) bills, respectively. Conversely, the average yield was unchanged at the mid segment. In the OMO segment, the average yield closed flat at 3.4%.
Activities in the Treasury bond secondary market were bullish as the average yield contracted by 22bps to 12.6%. Across the benchmark curve, the average yield contracted at the short (-38bps), mid (-36bps), and long (-4bps) segments as investors demanded the MAR-2027 (-132bps), APR-2029 (-49bps), and APR-2049 (-16bps) bonds, respectively.
