May 11, 2023/Cordros Report
EQUITIES
The Nigerian equities market sustained its descent, following profit-taking activities in GTCO (-2.4%), ZENITHBANK (-2.1%), and ACCESSCORP (-3.8%). Thus, the All-Share Index fell by 0.1% to 52,161.24 points. Accordingly, the Month-to-Date and Year-to-Date returns settled at -0.5% and +1.8%, respectively.
The total volume traded declined by 13.9% to 477.37 million units, valued at NGN5.24 billion, and exchanged in 5,539 deals. ACCESSCORP was the most traded stock by volume and value at 169.32 million units and NGN1.74 billion, respectively.
Sectoral performance was mixed, as the Banking (-1.4%) and Consumer Goods (-0.1%) indices recorded losses, while Oil & Gas (+1.3%) and Insurance (+0.2%) indices posted gains. The Industrial Goods index closed flat.
As measured by market breadth, market sentiment was positive (1.1x) as 22 tickers gained relative to 20 losers. ARDOVA (+10.0%) and NCR (+9.9%) recorded the highest gains of the day, while FCMB (-5.7%) and ACCESSCORP (-3.8%) topped the losers’ list.
CURRENCY
The naira appreciated by 0.1% to NGN462.73/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate was flat at 11.4%, as the system liquidity closed in a net long position (NGN756.77 billion).
Trading in the Nigerian Treasury bills secondary market was bullish, as the average yield contracted by 59bps to 6.7%. Across the curve, the average yield closed flat at the short end but dipped at the mid (-29bps) and long (-78bps) segments as market participants demanded the 119DTM (-85bps) and 287DTM (-205bps) bills, respectively.
Similarly, activities in the FGN bond secondary market were bullish, as the average yield declined by 6bps to 14.0%. Across the benchmark curve, the average yield contracted at the short (-19bps) end following buying interest in the MAR-2024 (-74bps) bond. Conversely, the average yield closed flat at the mid and long segments.
