March 7, 2023/Cordros Report
EQUITIES
The domestic bourse traded with mixed sentiments as buying interest in DANGCEM (+0.7%) was offset by sell-offs of ZENITHBANK (-1.3%) and FBNH (-2.6%). Thus, the All-Share Index closed flat at 55,603.94 points, with the Month-to-Date and Year-to-Date returns unchanged at -0.4% and +8.5%, respectively.
The total volume traded increased by 29.1% to 159.46 million units, valued at NGN2.48 billion, and exchanged in 4,187 deals. TRANSCORP was the most traded stock by volume at 14.42 million units, while ZENITHBANK was the most traded stock by value at NGN344.88 million.
Analysing by sectors, the Banking (-1.0%), Oil & Gas (-0.4%), and Consumer Goods (-0.1%) indices declined, while the Insurance (+0.5%) and Industrial Goods (+0.3%) indices recorded gains.
As measured by market breadth, market sentiment was negative (0.5x), as 22 tickers lost relative to 10 gainers. MRS (-10.0%) and NCR (-9.9%) recorded the highest losses of the day, while CAVERTON (+9.6%) and UACN (+7.6%) topped the gainers’ list.
CURRENCY
The naira was flat at NGN461.50/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 88bps to 10.8%, following the inflow from OMO maturities (NGN50.00 billion).
The NTB secondary market traded with bullish sentiments, as the average yield contracted by 37bps to 3.7%. Across the curve, the average yield contracted at the short (-79bps) end following interest on the 93DTM (-238bps) bill. Conversely, the average yield closed flat at the mid and long segments. Elsewhere, the average yield closed flat at 3.0% in the OMO segment.
Trading in the FGN bond secondary market was bullish, as the average yield contracted by 8bps to 12.9%. Across the benchmark curve, the average yield declined at the short (-6bps) and long (-13bps) ends as investors demanded the APR-2023 (-28bps) and APR-2049 (-26bps) bonds, respectively. Meanwhile, the average yield was flat at the mid segment.
