January 30, 2023/Cordros Report
EQUITIES
The Nigerian equities market kicked off this week’s trading on a bullish note following bargain-hunting in AIRTELAFRI (+3.1%). Thus, the All-Share Index advanced by 1.0% to 53,157.83 points. Accordingly, the Year-to-Date return increased to +3.7%.
The total volume traded increased by 17.7% to 201.36 million units, valued at NGN5.67 billion, and exchanged in 4,332 deals. ZENITHBANK was the most traded stock by volume at 36.76 million units, while GEREGU was the most traded stock by value at NGN1.79 billion.
Sectoral performance was mixed, as the Banking (+0.7%), Consumer Goods (+0.2%), and Industrial Goods (+0.1%) indices recorded gains, while the Oil & Gas index closed flat. The Insurance (-1.2%) index was the sole loser for the day.
As measured by market breadth, market sentiment was positive (1.9x), as 28 tickers gained relative to 15 losers. GEREGU (+10.0%) and JOHNHOLT (+10.0%) topped the gainers’ list, while WAPIC (-8.9%) and TRIPPLEG (-8.6%) recorded the most significant losses 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 closed flat at 11.0%, as the system liquidity closed at a net long position (NGN581.26 billion).
The Treasury bills secondary market traded with bullish sentiments, as the average yield contracted by 3bps to 1.4%. Across the curve, the average yield was flat at the short end but expanded at the mid (+21bps) segment as participants sold off the 129DTM (+64bps) bill. Conversely, the average yield declined at the long (-18bps) end due to demand for the 297DTM (-105bps) bill. Elsewhere, the average yield was flat at 2.9% in the OMO segment.
Activities in the FGN bond secondary market were mixed, albeit with a bearish tilt, as the average yield inched higher by 1bp to 12.9%. Across the benchmark curve, the average yield increased at the short (+4bps) end due to the selloff of the MAR-2024 (+21bps) bond but contracted at the long (-2bps) end as investors demanded the MAR-2036 (-17bps) bond. The average yield closed flat at the mid segment.
