January 24, 2023/Cordros Report
EQUITIES
The local bourse reversed yesterday’s gains, closing 0.1% lower as investors sold off NB (-9.9%). As a result, the NGX ASI closed at 52,612.55 points, with the Year-to-Date return settling at +2.7%.
The total volume traded increased by 26.9% to 182.40 million units, valued at NGN4.82 billion, and exchanged in 3,470 deals. GEREGU was the most traded stock by volume and value at 23.84 million units and NGN3.20 billion, respectively.
On sectors, the Consumer Goods (-1.2%) and Insurance (-0.1%) indices declined, while the Industrial Goods (+0.4%) and Banking (+0.3%) indices recorded gains. The Oil & Gas index closed flat.
As measured by market breadth, market sentiment was positive (1.4x), as 20 tickers gained relative to 14 losers. MBENEFIT (+10.0%) and UNILEVER (+9.9%) recorded the highest gains of the day, while NB (-9.9%) and CAVERTON (-9.5%) topped the losers’ list.
CURRENCY
The naira depreciated by 0.1% to NGN462.00/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 100bps to 10.2%, following the inflow from FGN bond coupon payment (NGN21.44 billion).
The NTB secondary market traded with bullish sentiments, as the average yield contracted by 7bps to 3.4%. Across the curve, the average yield declined at the short (-15bps) end as participants demanded the 30DTM (-107bps) bill, but was flat at the mid and long segments. Meanwhile, the average yield was flat at 2.9% in the OMO segment.
Similarly, the FGN secondary market closed on a bullish note, as the average yield contracted by 6bps to 13.2%. Across the benchmark curve, the average yield dipped at the short (-15bps) end following investors’ interest in the MAR-2024 (-56bps) bond. Conversely, the average yield closed flat at the mid and long segments.
