May 8, 2023/Cordros Report
EQUITIES
Trading activities in the local bourse resumed the week on a positive note, as the All-Share index advanced by 0.2% to close at 52,579.52 points. Investors’ interest in NB (+3.9%) and some Tier-1 banking names – GTCO (+1.9%), ZENITHBANK (+1.5%), and ACCESSCORP (+2.7%) – underpinned today’s performance. Consequently, the Month-to-Date and Year-to-Date returns printed +0.3% and +2.6%, respectively.
The total volume traded advanced by 6.0% to 511.38 million units, valued at NGN7.14 billion, and exchanged in 5,883 deals. ACCESSCORP was the most traded stock by volume and value at 167.61 million units and NGN1.92 billion, respectively.
Sectoral performance was broadly positive, as the Insurance (+0.8%), Banking (+0.6%), Consumer Goods (+0.6%), and Oil & Gas (+0.4%) indices posted gains, while the Industrial Goods index closed flat.
As measured by market breadth, market sentiment was positive (1.7x), as 29 tickers gained relative to 17 losers. MULTIVERSE (+10.0%) and REDSTAREX (+10.0%) topped the gainer’s list, while CILEASING (-9.8%) and TRANSCORP (-7.7%) recorded the highest losses of the day.
CURRENCY
The naira depreciated by 0.1% to NGN462.78/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 4bps to 11.3%, in the absence of any significant inflow into the system.
The Nigerian Treasury bills secondary market opened the week on a tranquil note, as the average yield closed flat at 7.5%. Across the curve, the average yield closed flat at the short and mid segments but pared at the long (-1bp) end following mild interest in the 325DTM (-1bp) bill.
The Treasury bond secondary market traded with bearish sentiments, as the average yield expanded by 3bps to 14.0%. Across the benchmark curve, the average yield expanded at the short (+9bps) end due to the sell-off of the MAR-2027 (+46bps) bond, but was unchanged at the mid and long segments.
