February 15, 2023/Cordros Report
EQUITIES
Trading in the domestic bourse was moderately positive in today’s session, as the All-Share Index recorded a 2bps gain to close at 54,507.66 points. Precisely, investors’ interest in WAPCO (+1.3%) supported market performance amid sell pressures on FIDELITYBK (-3.0%). Thus, the Month-to-Date and Year-to-Date returns were unchanged at +2.4% and +6.4%, respectively.
The total volume traded declined by 24.4% to 134.46 million units, valued at NGN4.36 billion, and exchanged in 2,905 deals. GTCO was the most traded stock by volume at 42.35 million units, while SEPLAT was the most traded stock by value at NGN1.18 billion.
Analysing by sectors, the Banking (-0.1%), Consumer Goods (-0.1%), and Oil & Gas (-0.1%) indices closed in the red, while the Insurance (+0.9%), and Industrial Goods (+0.1%) indices recorded gains.
As measured by market breadth, market sentiment was positive (1.3x), as 20 tickers gained relative to 16 losers. TRIPPLEG (+10.0%) and LINKASSURE (+7.1%) recorded the highest gains of the day, while JAPAULGOLD (-6.7%) and SOVRENINS (-6.7%) 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 expanded by 543bps to 11.6%, following the settlement of the February FGN bond auction (NGN770.56 billion).
The Nigerian Treasury Bills secondary market traded with bearish sentiments, as the average yield expanded by 206bps to 3.7%. Across the curve, the average yield expanded at the short (+142bps), mid (+322bps), and long (+200bps) segments following selloffs of the 85DTM (+272bps), 113DTM (+366bps) and 344DTM (+393bps) bills, respectively. Similarly, the average yield expanded by 75bps to 2.9% in the OMO segment.
In the same vein, the FGN bond secondary market closed on a bearish note, as the average yield expanded by 17bps to 13.0%. Across the benchmark curve, the average yield expanded at the short (+45bps), and long (+1bp) ends following profit-taking activities on the APR-2023 (+263bps), and APR-2037 (+9bps) bonds, respectively. Conversely, the average yield closed flat at the mid segment.
