March 1, 2023/Cordros Report
EQUITIES
The bears resurfaced on the domestic bourse as sell pressures on AIRTELAFRI (-5.3%) caused a 0.5% decline in the benchmark index. Consequently, the NGX ASI settled at 54,189.31 points. Accordingly, the Month-to-Date and Year-to-Date returns printed -0.5% and +8.3%, respectively.
The total volume traded increased by 138.6% to 565.82 million units, valued at NGN6.58 billion, and exchanged in 4,340 deals. TRANSCORP was the most traded stock by volume at 47.89 million units, while GTCO was the most traded stock by value at NGN1.26 billion.
Sectoral performance was mixed, as the Consumer Goods (+2.5%), Oil & Gas (+0.8%), and Insurance (+0.2%) indices recorded gains, while the Banking index closed flat. The Industrial Goods (-0.1%) index was the sole loser of the day.
As measured by market breadth, market sentiment was positive (2.4x), as 29 tickers gained relative to 12 losers. VERITASKAP (+10.0%) and ARDOVA (+9.8%) topped the gainers’ list, while JOHNHOLT (-9.7%) and ETI (+7.7%) recorded the most significant losses of the day.
CURRENCY
The naira appreciated by 0.1% to NGN461.35/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 2bps to 10.8%, in the absence of any significant funding pressure on the system.
Quiet trading persisted in the NTB secondary market as the average yield closed flat at 4.0%. Elsewhere the average yield contracted by 74bps to 3.0% in the OMO segment.
Trading in the secondary bond secondary market was bullish, as the average yield contracted by 6bps to 12.9%. Across the benchmark curve, the average yield declined at the short (-12bps) and long (-4bps) ends as investors demanded the JAN-2026 (-40bps) and JUL-2045 (-15bps) bonds, respectively. Meanwhile, the average yield closed flat at the mid segment.
