May 18, 2023/Cordros Report
EQUITIES
In today’s trading session, the domestic equities market reversed this week’s gains as selloffs of AIRTELAFRI (-6.0%) caused a 0.9% decline in the benchmark Index. Thus, the NGX ASI settled at 52109.43 points, with the Month-to-Date and Year-to-Date returns settling at -0.6% and +1.7%, respectively.
The total volume traded decreased by 50.9% to 334.24 million units, valued at NGN5.15 billion, and exchanged in 5,350 deals. ACCESSCORP was the most traded stock by volume at 64.69 million units, while GTCO was the most traded stock by value at NGN1.34 billion.
Sectoral performance was broadly negative, as the Oil & Gas (-0.5%), Banking (-0.4%), and Insurance (-0.3%) indices printed losses, while the Consumer Goods and Industrial Goods closed flat.
As measured by market breadth, market sentiment was negative (0.8x), as 27 tickers lost relative to 22 gainers. ACADEMY (-10.0%) and ARDOVA (-9.9%) topped the losers’ list, while ABCTRANS (+10.0%) and MRS (+10.0%) recorded the most significant gains of the day.
CURRENCY
The naira appreciated by 0.5% to NGN463.00/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 13bps to 18.1%, in the absence of any significant inflow into the system.
Trading in the Nigerian Treasury bills secondary market was bearish, as the average yield expanded by 11bps to 6.8%. Across the curve, the average yield was flat at the short and long ends but expanded at the mid (+43bps) segment following selling pressures on the 175DTM (+157bps) bill.
Similarly, activities in the Treasury bond secondary market were bearish, as the average yield expanded by 2bps to 14.0%. Across the benchmark curve, the average yield expanded at the short (+12bps) end as market participants sold off the MAR-2024 (+52bps) bond, but contracted at the long (-3bps) end following demand for the JAN-2042 (-13bps) bond. Conversely, the average yield was flat at the mid segment.
