January 11, 2023/Cordros Report
EQUITIES
Bullish sentiments resurfaced in the Nigerian equities market as bargain hunting in BUACEMENT (+3.6%) drove the All-Share Index 0.6% higher to 51,729.87 points. Accordingly, the Year-to-Date gain increased to +0.9%.
The total volume traded declined by 18.4% to 281.94 million units, valued at NGN8.16 billion, and exchanged in 3,679 deals. FBNH was the most traded stock by volume at 108.93 million units, while BUACEMENT was the most traded stock by value at NGN4.07 billion.
On sectoral performance, the Industrial Goods (+1.5%), Banking (+1.1%), and Consumer Goods (+0.2%) indices recorded gains, while the Insurance (-0.7%) index closed in the red. The Oil & Gas index closed flat.
As measured by market breadth, market sentiment was positive (2.4x), as 26 tickers gained relative to 11 losers. THOMASWY (+9.5%) and CHAMPION (+9.5%) recorded the highest gains of the day, while ROYALEX (-7.4%) and WAPIC (-6.7%) topped the losers’ list.
CURRENCY
The naira depreciated by 0.1% to NGN461.90/USD at the I&E window.
MONEY MARKET AND FIXED INCOME
The overnight lending rate remained at 9.8%, as the system liquidity closed at a net long position (NGN449.24 billion).
Trading in the Nigerian Treasury bills secondary market was quiet, as market participants anticipated the result of today’s PMA. Thus, the average yield was flat at 2.9%. Similarly, the average yield was unchanged at 3.4% in the OMO segment.
Activities in the FGN bonds secondary market were bullish, as the average yield contracted by 4bps to 12.5%. Across the benchmark curve, the average yield contracted at the short (-10bp) end due to investors’ demand for the FEB-2028 (-41bps) bond, but closed flat at the mid and long segments.
