February 6, 2023/Cordros Report
EQUITIES
Trading in the local bourse extended last week’s bullish performance, as bargain-hunting in MTNN (+1.7%) inspired a 0.3% gain in the All-Share Index to 54,367.74 points. Accordingly, the Month-to-Date and Year-to-Date returns increased to +2.1% and +6.1%, respectively.
The total volume traded declined by 28.5% to 191.64 million units, valued at NGN4.80 billion, and exchanged in 4,359 deals. GTCO was the most traded stock by volume and value at 50.59 million units and NGN1.27 billion, respectively.
Sectoral performance was mixed, as the Insurance (+0.3%) index advanced, while the Banking (-0.3%) index declined. The Industrial Goods, Consumer Goods, and Oil & Gas indices closed flat.
As measured by market breadth, market sentiment was mixed (1.0x), as an equal number of tickers (16) gained and lost. SOVRENINS (+10.0%) and LINKASSURE (+8.9%) topped the gainers’ list, while MCNICHOLS (-9.0%) and PRESTIGE (-8.7%) recorded the highest losses of the day.
CURRENCY
The naira depreciated by 0.1% to NGN462.17/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 25bps to 10.8%, in the absence of any significant inflow into the system.
The Treasury bills secondary market traded with bullish sentiments, as the average yield contracted by 3bps to 1.6%. Across the curve, the average yield closed flat at the short and long ends but dipped at the mid (-14bps) segment following participants’ interest in the 122DTM (-41bps) bill. Similarly, the average yield contracted by 28bps to 1.7% in the OMO segment.
Elsewhere, the Treasury bond secondary market traded with mixed sentiments, albeit with a bearish tilt, as the average yield inched higher by 1bp to 13.0%. Across the benchmark curve, the average yield contracted at the short (-4bps) end as investors demanded the MAR-2025 (-37bps) bond, but expanded at the long (+5bps) end due to profit-taking activities on the APR-2037 (+35bps) bond. Conversely, the average yield was flat at the mid segment.
