January 18, 2023/Cordros Report
EQUITIES
The domestic bourse traded on a sour note in today’s trading session, as profit-taking activities in DANGCEM (-1.9%) weighed on market performance. Accordingly, the All-Share Index declined by 0.2% to 52,615.51 points, with the Year-to-Date return settling at +2.7%.
The total volume traded declined by 4.6% to 217.95 million units, valued at NGN4.47 billion, and exchanged in 3,377 deals. STERLNBANK was the most traded stock by volume at 94.27 million units, while GEREGU was the most traded stock by value at NGN1.35 billion.
Sectoral performance was mixed, as the Insurance (+1.4%), Oil & Gas (+0.1%), and Banking (+0.1%) indices recorded gains, while the Industrial Goods (-1.0%) and Consumer Goods (-0.2%) indices declined.
As measured by market breadth, market sentiment was negative (0.8x), as 21 tickers lost relative to 17 gainers. FTNCOCOA (-6.7%) and ABCTRANS (-6.5%) topped the losers’ list, while CHELLARAM (+9.8%) and CHIPLC (+9.5%) recorded the most significant gains of the day.
CURRENCY
The naira appreciated by 0.1% to NGN461.25/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate was flat at 9.8%, as the average system liquidity closed at a net long position (NGN384.58 billion).
Activities in the Treasury bills secondary market were bearish, as the average yield expanded by 2bps to 3.3%. Across the curve, the average yield expanded at the short (+4bps) end following profit-taking on the 8DTM (+72bps) bill but closed flat at the mid and long segments. Elsewhere, the average yield was flat at 2.9% in the OMO segment.
Trading in the Treasury bond secondary market was bearish, as the average yield expanded by 5bps to 12.8%. Across the benchmark curve, the average yield closed flat at the short and mid segments but expanded at the long (+12bps) end as investors sold off the APR-2049 (+60bps) bond.
