June 13, 2023/Cordros Report
EQUITIES
The local bourse opened the week on an impressive note as investors reacted positively to the policy signals and planned financial sector reforms from the new administration. Precisely, investors’ interest in AIRTELAFRI (+7.8%) and MTNN (+3.6%) prompted a 4.0% gain in the All-Share index to 58,163.55 points. Consequently, the Month-to-Date and Year-to-Date returns advanced to +4.3% and +13.5%, respectively.
The total volume traded increased significantly by 106.4% to 1.19 billion units, valued at NGN19.23 billion, and exchanged in 10,269 deals. UBA was the most traded stock by volume at 214.94 million units, while GTCO was the most traded stock by value at NGN6.24 billion.
On sectoral performance, gains in the Banking (+8.8%), Insurance (+4.8%), Consumer Goods (+3.4%), Industrial Goods (+1.2%), and Oil & Gas (+0.2%) indices reflected the overall market performance.
As measured by market breadth, market sentiment was positive (5.1x), as 61 tickers gained relative to 12 losers. ACCESSCORP (+10.0%) and NASCON (+10.0%) recorded the highest gains of the day, while ELLAHLAKES (-10.0%) and JOHNHOLT (-10.0%) topped the losers’ list.
CURRENCY
The naira appreciated by 0.2% to NGN471.67/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 20bps to 12.3%, in the absence of any significant outflow from the system.
Trading in the Treasury bills secondary market was muted, as the average yield was unchanged at 6.3%.
The Treasury bond secondary market closed on a bullish note, as the average yield pared by 1bp to 13.7%. Across the benchmark curve, the average yield was flat at the short end but contracted at the mid (-2bps) and long (-1bp) segments as investors demanded the APR-2032 (-3bps) and MAR-2050 (-5bps) bonds, respectively.
