January 31, 2023/Cordros Report
EQUITIES
Sentiments remained positive in the local bourse as demand for GEREGU (+10.0%) supported market performance. Accordingly, the All-Share Index inched higher by 0.2% to close at 53,238.67 points. Consequently, the Year-to-Date return advanced to +3.9%.
The total volume traded increased by 24.3% to 250.19 million units, valued at NGN5.88 billion, and exchanged in 4,328 deals. UNIVINSURE was the most traded stock by volume at 48.55 million units, while AIRTELAFRI was the most traded stock by value at NGN3.31 billion.
Analysing by sectors, the Consumer Goods (-0.2%) and Banking (-0.1%) indices declined, while the Insurance (+3.0%) index advanced. The Industrial Goods, and Oil & Gas indices closed flat.
As measured by market breadth, market sentiment was positive (1.6x), as 29 tickers gained relative to 18 losers. GEREGU (+10.0%) and LIVINGTRUST (+10.0%) recorded the highest gains of the day, while NCR (-10.0%) and CHAMS (-10.0%) topped the losers’ list.
CURRENCY
The naira was flat at NGN461.50/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate remained unchanged at 11.0%, as the system liquidity closed at a net long position (NGN177.65 billion).
Activities in the Treasury bills secondary market were bearish, as the average yield expanded by 12bps to 1.6%. Across the curve, the average yield expanded at the short (+10bps) and long (+21bps) ends, due to the selloffs of the 58DTM (+67bps) and 282DTM (+127bps) bills, respectively. The average yield closed flat at the mid segment. Elsewhere, the average yield contracted by 89bps to 2.0% in the OMO segment.
Similarly, the Treasury bonds secondary market traded with bearish sentiments, as the average yield expanded by 20bps to 13.1%. Across the benchmark curve, the average yield advanced at the short (+9bps), mid (+39bps), and long (+21bps) segments as investors sold off the FEB-2028 (+33bps), APR-2029 (+53bps) and APR-2049 (+64bps) bonds, respectively.
