May 23. 2023/Cordros Report
EQUITIES
The local bourse extended yesterday’s gain as buying interests in a few banking names – FBNH (+7.5%), STANBIC (+5.3%), and ZENITHBANK (+2.1%) – drove the NGX ASI 0.5% higher to close at 52,621.19 points. As a result, the Month-to-Date and Year-to-Date returns increased to +0.4% and +2.7%, respectively.
The total volume traded increased by 11.2% to 350.97 million units, valued at NGN5.17 billion, and exchanged in 5,946 deals. UBA was the most traded stock by volume at 62.45 million units, while ZENITHBANK was the most traded stock by value at NGN1.58 billion.
Performance across sectors was mixed, as the Banking (+1.6%) and Consumer Goods (+0.4%) indices posted gains, while the Industrial Goods, Insurance, and Oil & Gas indices were unchanged.
As measured by market breadth, market sentiment was positive (2.2x), as 33 tickers gained relative to 15 losers. TRANSCORP (+9.9%) and TRIPPLEG (+9.8%) recorded the highest gains of the day, while CHELLARAM (-9.9%) and SUNUASSUR (-9.4%) topped the losers’ list.
CURRENCY
The naira depreciated by 0.2% to NGN464.42/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 213bps to 11.5%, in the absence of any significant inflow into the system.
The NTB secondary market traded with mixed sentiments, albeit with a bullish tilt, as the average yield pared by 1bp to 6.8%. Across the curve, the average yield closed flat at the short and mid segments but contracted at the long (-2bps) end as market participants demanded the 296DTM (-44bps) bill.
Proceedings in the Treasury bond secondary market were quiet as the average yield closed flat at 14.0%. Across the benchmark curve, the average yield expanded slightly at the short (+1bp) end following the sell-off of the MAR-2027 (+10bps) bond. Conversely, the average yield was flat at the mid and long segments.
