March 13, 2023/Cordros Report
EQUITIES
The Nigerian equities market started the week’s trading with mixed sentiments as buying interest in BUAFOODS (+4.2%) was offset by late selloffs of ZENITHBANK (-3.1%) and GTCO (-1.9%). Thus, the All-Share Index traded flat at 55,788.37 points, with the Year-to-Date return flat at +8.9%.
The total volume traded declined by 32.4% to 179.03 million units, valued at NGN2.55 billion, and exchanged in 4,296 deals. NGXGROUP was the most traded stock by volume and value at 38.15 million units and NGN994.55 million, respectively.
Sectoral performance was mixed, as the Banking (-1.6%), Insurance (-0.7%), and Industrial Goods (-0.1%) indices declined, while the Oil & Gas index closed flat. The Consumer Goods (+1.8%) index was the sole gainer for the day.
As measured by market breadth, market sentiment was negative (0.6x), as 21 tickers lost relative to 12 gainers. NGXGROUP (-9.7%) and NPFMCRFBK (-8.5%) recorded the most significant losses of the day, while UPL (+9.9%) and CWG (+7.7%) topped the gainers’ list.
CURRENCY
The naira was flat at NGN461.67/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 2bps to 10.8%, in the absence of any significant outflows from the system.
Activities in the Treasury bills secondary market were quiet, as the average yield was unchanged at 3.6%. Similarly, the average yield was flat at 3.0% in the OMO segment.
Proceedings in the Treasury bond secondary market were mixed albeit with a bearish tilt, as the average yield inched higher by 1bp to 12.8%. Across the benchmark curve, the average yield pared at the short (-1bp) end as investors demanded the MAR-2024 (-6bps) bond but expanded at the long (+2bps) end following the sell-off of the APR-2049 (+8bps) bond. Conversely, the average yield was flat at the mid-segment.
