February 13, 2023/Cordros Report
EQUITIES
Activities in the Nigerian equities market started the week slightly positive, as bargain buying in ZENITHBANK (+1.8%) and WAPCO (+2.4%) drove the benchmark Index higher. Precisely, the ASI advanced by 0.1% to 54,364.67 points, with the Month-to-Date and Year-to-Date returns settling at +2.1% and +6.1%, respectively.
The total volume traded declined by 19.8% to 140.84 million units, valued at NGN3.16 billion, and exchanged in 3,553 deals. UBA was the most traded stock by volume at 28.62 million units, while DANGCEM was the most traded stock by value at NGN812.89 million.
Sectoral performance was broadly positive, as the Oil & Gas (+1.0%), Banking (+0.6%), Insurance (+0.5%), Industrial Goods (+0.1%), and Consumer Goods (+0.1%) indices recorded gains.
As measured by market breadth, market sentiment was positive (2.3x), as 18 tickers gained relative to 8 losers. CONOIL (+10.0%) and MRS (+8.2%) recorded the most significant gains of the day, while CWG (-9.2%) and FIDELITYBK (-2.9%) topped the losers’ list.
CURRENCY
The naira appreciated by 0.1% to NGN461.00/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 32bps to 10.8%, in the absence of any significant inflow into the system.
The Nigerian Treasury bills secondary market traded with bullish sentiments, as the average yield contracted by 5bps to 1.4%. Across the curve, the average yield closed flat at the short end but expanded at the mid (+14bps) segment following the sell-off of the 115DTM (+43bps) bill. Conversely, the average yield declined at the long (-23bps) end due to demand for the 269DTM (-114bps) bill. Elsewhere, the average yield remained flat at 1.3% in the OMO segment.
Similarly, activities in the FGN bond secondary market were bullish, as the average yield contracted by 2bps to 12.7%. Across the benchmark curve, the average yield contracted at the short (-4bps) and long (-1bp) ends as investors demanded the APR-2023 (-15bps) and APR-2037 (-9bps) bonds, respectively. The average yield closed flat at the mid segment.
