February 16, 2023/Cordros Report
EQUITIES
The Nigerian equities market traded marginally higher as buying interest in GEREGU (+3.7%) triggered a 2bps expansion in the All-Share Index to 54,520.20 points. Accordingly, the Month-to-Date and Year-to-Date returns printed +2.4%, and +6.4% respectively.
The total volume traded declined by 6.4% to 125.86 million units, valued at NGN3.60 billion, and exchanged in 2,670 deals. GTCO was the most traded stock by volume at 19.17 million units, while DANGCEM was the most traded stock by value at NGN1.95 billion.
Sectoral performance was mixed as the Insurance (-0.4%) and Industrial Goods (-0.1%) indices declined, while the Consumer Goods (+0.1%) index advanced. The Oil & Gas and Banking indices closed flat.
As measured by market breadth, market sentiment was positive (1.1x) as 17 tickers gained relative to 15 losers. TRIPPLEG (+9.7%) and JAPAULGOLD (+7.1%) topped the gainers’ list, while COURTVILLE (-9.6%) and CWG (-9.0%) recorded the most significant losses of the day.
CURRENCY
The naira depreciated by 0.1% to NGN462.00/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 38bps to 16.3%, in the absence of any significant inflow into the system.
Activities in the Nigerian Treasury bill market were bearish, as the average yield expanded by 11bps to 3.8%. Across the benchmark curve, the average yield expanded at the short (+28bps) end due to selloffs of the 21DTM (+105bps) bill but contracted at the mid (-5bps) segment following buying interest in the 112DTM (-14bps) bill. Conversely, the average yield closed flat at the long end. Elsewhere, the average yield expanded by 92bps to 3.8% in the OMO segment.
The Treasury bond secondary market traded with mixed sentiments, although with a bullish tilt, as the average yield pared by 1bp to 13.0%. Across the benchmark curve, the average yield declined at the short (-2bps) and long (-2bps) ends as investors demanded the MAR-2025 (-33bps) and APR-2049 (-5bps) bonds, respectively. The average yield remained flattish at the mid segment.
