February 7, 2023/Cordros Report
EQUITIES
The domestic equities market reversed yesterday’s gains, as investors took profits off DANGCEM (-0.7%) and GEREGU (-5.1%). Thus, the All-Share Index declined by 0.1% to 54,299.76 points. Consequently, the Month-to-Date and Year-to-Date returns moderated to +2.0% and +6.0%, respectively.
The total volume traded increased by 4.4% to 200.04 million units, valued at NGN7.62 billion, and exchanged in 4,380 deals. FCMB was the most traded stock by volume at 27.98 million units, while GEREGU was the most traded stock by value at NGN4.18 billion.
On sectoral performance, the Insurance (-0.8%), Banking (-0.6%), and Industrial Goods (-0.3%) indices printed losses, while the Consumer Goods index closed flat. The Oil & Gas (+0.5) index was the sole gainer of the day.
As measured by market breadth, market sentiment was negative (0.8x), as 26 tickers lost relative to 20 gainers. JAPAULGOLD (-9.4%) and FCMB (-7.8%) recorded the most significant losses of the day, while CONOIL (+10.0%) and MRS (+9.8%) topped the gainers’ list.
CURRENCY
The naira appreciated by 0.2% to NGN461.50/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate closed flat at 10.8%, amid the inflow from OMO maturities (NGN38.53 billion).
Trading in the NTB secondary market was quiet, as participants stayed on the sideline in anticipation of tomorrow’s NTB PMA. Thus, the average yield remained at 1.6%. Likewise, the average yield closed flat at 1.7% in the OMO segment.
Activities in the FGN bond secondary market were bullish, as the average yield contracted by 15bps to 12.8%. Across the benchmark curve, the average yield declined at the short (-41bps) end following buying interests on the MAR-2024 (-138bps) bond but closed flat at the mid and long segments.
