June 14, 2023/Cordros Report
EQUITIES
The domestic bourse extended its bullish momentum following positive reactions to perceived currency reforms by the new administration. Notably, sustained bargain hunting in MTNN (+10.0%) and Tier-1 banking names triggered a 3.1% increase in the benchmark index. Thus, the All-Share Index closed at 59,985.10 points. Accordingly, the Month-to-Date and Year-to-Date returns increased to +7.6% and +17.0%, respectively.
The total volume traded advanced by 9.7% to 1.30 billion units, valued at NGN21.08 billion, and exchanged in 11,947 deals. UBA was the most traded stock by volume at 230.76 million units, while GTCO was the most traded stock by value at NGN4.20 billion.
Analysing by sectors, the Banking (+26.5%) and Insurance (+23.0%) indices recorded the most significant gains, followed by the Oil & Gas (+16.0%), and Consumer Goods (+4.1%) indices. The Industrial Goods (-1.1%) index was the sole loser of the day.
As measured by market breadth, market sentiment was largely positive (5.4x), as 70 tickers gained relative to 13 losers. DANGSUGAR (+10.0%) and INTBREW (+10.0%) topped the gainers’ list, while PHARMDEKO (-9.7%) and CWG (-9.4%) recorded the highest losses of the day.
CURRENCY
The naira depreciated significantly by 29.0% to NGN664.04/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 10bps to 12.2%, in the absence of any significant funding pressure on the system.
Activities in the NTB secondary market were quiet, as participants anticipated the result of today’s primary market auction. Thus, the average yield was unchanged at 6.3%.
The FGN treasury bond secondary market traded with bearish sentiments, as the average yield expanded by 3bps to 13.8%. Across the benchmark curve, the average yield expanded at the short (+4bps) and long (+4bps) ends as market participants sold off the MAR-2027 (+21bps) and APR-2049 (+19bps) bonds, respectively. Elsewhere, the average yield was flat at the mid segment.
