January 25, 2023/Cordros Report
EQUITIES
Bearish sentiments persisted in the Nigerian equities market, as profit-taking activities in GEREGU (-5.9%) and MTNN (-0.4%) caused a 2bps decline in the benchmark index. Thus, the All-Share Index settled at 52,599.65 points. Consequently, the Year-to-Date return moderated to +2.6%.
The total volume traded declined by 34.3% to 119.84 million units, valued at NGN2.69 billion, and exchanged in 3,552 deals. MBENEFIT was the most traded stock by volume at 11.26 million units, while GEREGU was the most traded stock by value at NGN1.14 billion, respectively.
Analysing by sectors, the Insurance (-0.7%) and Banking (-0.3%) indices declined, while the Industrial Goods and Oil & Gas indices closed flat. The Consumer Goods (+0.3%) index was the sole gainer of the day.
As measured by market breadth, market sentiment was positive (1.6x), as 21 tickers gained relative to 16 losers. RTBRISCOE (+10.0%) and TRIPPLEG (+10.0%) topped the gainers’ list, while THOMASWY (-9.7%) and CORNERST (-6.9%) recorded the most significant losses of the day.
CURRENCY
The naira appreciated by 0.1% to NGN461.70/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 66bps to 10.8%, in the absence of any significant funding pressures on the system.
Activities in the Nigerian Treasury bills secondary market were mixed, although with a bullish tilt, as the average yield dipped by 2bps to 3.4%. Across the curve, the average yield declined at the short (-4bps) end due to demand for the 29DTM (-30bps) bill, but remained flat at the mid and long segments. Similarly, the average yield was unchanged at 2.9% in the OMO segment.
Trading in the Treasury bonds secondary market was mixed, albeit with a bullish bias, as the average yield pared by 1bp to 13.2%. Across the benchmark curve, the average yield dipped at the short (-1bp) end following buying interest in the MAR-2025 (-17bps) bond. Meanwhile, the average yield closed flat at the mid and long segments.
