January 23, 2023/Cordros Report
EQUITIES
The domestic equities market resumed this week’s trading on a positive note, as bargain-hunting in GEREGU (+6.9%) underpinned market performance. Thus, the All-Share Index advanced by 0.1% to 52,657.69 points. Consequently, the Year-to-Date return settled at +2.7%.
The total volume traded declined by 67.6% to 143.74 million units, valued at NGN1.78 billion, and exchanged in 4,078 deals. FBNH was the most traded stock by volume at 19.66 million, while MTNN was the most traded stock by value at NGN326.85 billion.
Sectoral performance was broadly positive, as the Insurance (+0.2%), Banking (+0.1%), and Consumer Goods (+0.1%) indices posted gains, while the Oil & Gas and Industrial Goods indices closed flat.
As measured by market breadth, market sentiment was positive (1.4x), as 18 tickers gained relative to 13 losers. JOHNHOLT (+9.4%) and NSLTECH (+9.1%) topped the gainers’ list, while CORNERST (-10.0%) and CWG (-9.6%) recorded the most significant losses for the day.
CURRENCY
The naira was flat at NGN461.63/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 33bps to 11.2%, in the absence of any significant funding pressure on the system.
Trading in the Treasury bills secondary market was muted, as the average yield was unchanged at 3.5%. Similarly, the average yield was flat at 2.9% in the OMO segment.
The Treasury bond secondary market closed on a bullish note, as the average yield contracted by 3bps to 13.2%. Across the benchmark curve, the average yield dipped at the short (-7bps) end as investors demanded the MAR-2027 (-54bps) bond, but closed flat at the mid and long segments.
