May 30, 2023/Cordros Report
EQUITIES
Trading activities in the local bourse resumed the week on a positive note, as investors cheered President Tinubu’s pro-market policies. Notably, bargain-hunting activities in MTNN (+7.5%) and DANGCEM (+7.4%) drove the benchmark index 5.2% higher – the most significant single-day gain since 12 November 2020 (+6.2%). Thus, the NGX ASI closed at 55,745.74 points. Accordingly, the Month-to-Date and Year-to-Date gains advanced to +6.4% and +8.8%, respectively.
The total volume traded increased by 133.5% to 1.08 billion units, valued at NGN15.80 billion, and exchanged in 9,916 deals. ACCESSCORP was the most traded stock by volume and value at 199.62 million units and NGN2.45 billion, respectively.
From a sectoral perspective, gains in the Banking (+8.2%), Consumer Goods (+6.5%), Industrial Goods (+6.1%), Oil & Gas (+4.0%), and Insurance (+2.3%) indices reflected the overall market performance.
As measured by market breadth, market sentiment was positive (5.3x), as 64 tickers gained relative to 12 losers. JAIZBANK (+10.0%) and NB (+10.0%) recorded the highest gains of the day, while IKEJAHOTEL (-10.0%) and NCR (-9.8%) topped the losers’ list.
CURRENCY
The naira was flat at NGN464.50/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate was flat at 13.3%, as the system liquidity closed in a net long position (NGN229.11 billion).
Activities in the Treasury bills secondary market were bullish, as the average yield contracted by 20bps to 6.6%. Across the curve, the average yield closed flat at the short and mid segments but declined at the long (-33bps) end, following demand for the 303DTM (-100bps) bill.
Similarly, the Nigerian bonds secondary market traded with bullish sentiments, as the average yield contracted by 5bps to 13.9%. Across the benchmark curve, the average yield contracted at the short (-12bps) and long (-5bps) ends as investors demanded the MAR-2024 (-40bps) and APR-2037 (-18bps) bonds, respectively. Meanwhile, the average yield expanded at the mid (+6bps) segment following the sell-off of the APR-2029 (+11bps) bond.
