May 10, 2023/Cordros Report
EQUITIES
Sentiments in the domestic bourse turned bearish as investors sold off BUACEMENT (-8.0%). Thus, the NGX ASI declined by 0.8% to close at 52,209.06 points. Consequently, the Month-to-Date and Year-to-Date returns printed -0.4% and +1.9%, respectively.
The total volume traded declined by 13.5% to 554.31 million units, valued at NGN5.96 billion, and exchanged in 5,168 deals. ACCESSCORP was the most traded stock by volume and value at 139.29 million units and NGN1.47 billion, respectively.
Analysing by sectors, the Industrial Goods (-3.4%), Banking (-1.2%), and Insurance (-0.2%) indices declined, while the Consumer Goods (+1.2%) and Oil & Gas (+0.9%) indices recorded gains.
As measured by market breadth, market sentiment was positive (1.7x), as 34 tickers gained relative to 20 losers. ARDOVA (+10.0%) and NCR (+9.9%) topped the gainers’ list, while CAVERTON (-9.5%) and SUNUASSUR (-9.3%) recorded the most significant losses of the day.
CURRENCY
The naira depreciated by 0.2% to NGN463.02/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 5bps to 11.4%, in the absence of any significant funding pressure on the system.
The NTB secondary market traded with bullish sentiments, as the average yield contracted by 57bps to 7.2%. Across the curve, the average yield was flat at the short and mid segments, but contracted at the long (-82bps) end following buying interest in the 197DTM (-237bps) bill.
Proceedings in the FGN bond secondary market were bullish, as the average yield contracted by 6bps to 14.0%. Across the benchmark curve, the average yield declined at the short (-22bps) end as investors demanded the MAR-2024 (-72bps) bill, but expanded at the long (+3bps) end following profit taking in the MAR-2035 (+21bps) bill. Meanwhile, the average yield was flat at the mid segment.
