January 16, 2023/Cordros Report
EQUITIES
The Nigerian equities market resumed the week on a bearish note as profit-taking activities on ZENITH BANK (-3.7%) undermined today’s performance. As a result, the All-Share Index dipped by 0.3% to 52,348.82 points, with Year-to-Date return settling at +2.1%.
The total volume traded increased by 2.2% to 221.85 million units, valued at NGN3.25 billion, and exchanged in 5,219 deals. UBA was the most traded stock by volume at 22.93 million units, while GTCO was the most traded stock by value at NGN482.50 billion.
Sectoral performance was mixed, as the Banking (-3.4%), Industrial Goods (-0.2%), and Consumer Goods (-0.1%) indices printed losses, while Insurance (+0.4%) and Oil & Gas (+0.1%) indices advanced.
As measured by market breadth, market sentiment was negative (0.9x), as 23 tickers lost relative to 20 gainers. CHELLARAM (-9.7%) and PRESTIGE (-8.7%) topped the losers’ list, while PRESCO (+9.7%) and WAPIC (+9.5%) recorded the most significant gains of the day.
CURRENCY
The naira appreciated by 0.1% to NGN461.50/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate was unchanged at 10.0%, as the system liquidity closed at a net long position (NGN244.51 billion).
Activities in the Treasury bills secondary market were bullish, as the average yield contracted by 4bps to 3.3%. Across the curve, the average yield closed flat at the short and mid segments but dipped at the long (-14bps) end following demand for the 283DTM (-45bps) bill. Elsewhere, the average yield was flat at 3.4% in the OMO segment.
Trading in the FGN bond secondary market was bearish, as the average yield expanded by 3bps to 12.6%. Across the benchmark curve, the average yield expanded at the short (+7bps) and long (+2bps) ends as investors sold off the MAR-2025 (+29bps) and APR-2049 (+15bps) bonds, respectively; but closed flat at the mid segment.
