February 9, 2023/Cordros Report
EQUITIES
Bearish sentiments resurfaced in the domestic equities market, as losses in GEREGU (-2.4%) and NB (-2.6%) drove the benchmark index lower. Accordingly, the All-Share Index fell by 0.1% to 54,359.90 points. Sequentially, the Month-to-Date and Year-to-Date returns moderated to +2.1% and +6.1%, respectively.
The total volume of trades increased by 46.8% to 222.58 million units, valued at NGN3.04 billion, and exchanged in 3,287 deals. UNIVINSURE was the most traded stock by volume at 71.81 million units, while GTCO was the most traded stock by value at NGN560.37 million.
Sectoral performance was broadly negative, as the Insurance (-1.5%), Oil & Gas (-0.6%), Banking (-0.4%) and Consumer Goods (-0.3%) indices recorded losses, while the Industrial Goods index closed flat.
As measured by market breadth, market sentiment was negative (0.9x), as 17 tickers lost relative to 16 gainers. GLAXOSMITH (-7.9%) and CORNERST (-4.8%) recorded the highest losses of the day, while NNFM (+9.7%) and REDSTAREX (+9.5%) topped the gainers’ list.
CURRENCY
The naira was flat at NGN461.10/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate closed flat at 10.8%, amid the debit for net NTB issuance (NGN200.00 billion).
Activities in the Nigerian Treasury bill market were bullish, as the average yield contracted by 7bps to 1.5%. Across the curve, the average yield closed flat at the short and long ends, but declined at the mid (-33bps) segment following participants’ interest in the 119DTM (-98bps) bill. Similarly, the average yield contracted by 27bps to 1.9% in the OMO segment.
Proceedings in the FGN bond secondary market were bullish, as the average yield contracted by 12bps to 12.7%. Across the benchmark curve, the average yield dipped at the short (-33bps) end following investors’ demand for the MAR-2025 (-173bps) bond, but closed flat at the mid and long segments.
