May 17, 2023/Cordros Report
EQUITIES
Bullish sentiments persisted in the local bourse as bargain-hunting in NB (+9.6%) and GTCO (+4.2%) triggered a 0.3% gain in the All-Share Index to 52,580.86 points. Consequently, the Month-to-Date and Year-to-Date returns settled at +0.3% and +2.6%, respectively.
The total volume traded increased by 18.0% to 680.80 million units, valued at NGN7.89 billion, and exchanged in 6,666 deals. FIDELITYBK was the most traded stock by volume at 254.05 million units, while GTCO was the most traded stock by value at NGN1.57 billion.
Across the sectors, activities were broadly positive, as the Consumer Goods (+1.1%), Banking (+1.0%), Oil & Gas (+0.5%), and Insurance (+0.5%) indices recorded gains, while the Industrial Goods (-0.1%) index declined.
As measured by market breadth, market sentiment was positive (1.6x), as 29 tickers gained relative to 18 losers. MRS (+9.9%) and NB (+9.6%) topped the gainers’ list, while CHIPLC (-7.7%) and SOVRENINS (-6.5%) recorded the highest losses of the day.
CURRENCY
The naira depreciated by 0.1% to NGN465.13/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 413bps to 18.3%, as system liquidity closed in a net short position (NGN201.38 billion).
Activities in the NTB secondary market were bearish, as the average yield expanded by 5bps to 6.7%. Across the curve, the average yield closed flat at the short and long ends but expanded at the mid (+21bps) segment following sell-offs of the 113DTM (+82bps) bill.
Elsewhere, the FGN bond secondary market traded with mixed sentiments, albeit with a bullish tilt, as the average yield pared by 1bp to 14.0%. Across the benchmark curve, the average yield contracted at the short (-1bp) and long (-1bp) ends as investors demanded the MAR-2027 (-7bps) and MAR-2035 (-15bps) bonds, respectively. Conversely, the average yield was flat at the mid segment.
