June 15, 2023/Cordros Report
EQUITIES
The Nigerian equities market paused its upward trend following profit-taking activities in MTNN (-3.8%) and some Tier-1 banking stocks. Consequently, the All-Share Index declined by 1.3% to 59,195.21 points. Accordingly, the Month-to-Date and Year-to-Date returns moderated to +6.1% and +15.5%, respectively.
The total volume of trade declined by 9.8% to 1.17 billion units, valued at NGN15.36 billion, and exchanged in 12,611 deals. UBA was the most traded stock by volume at 192.83 million units, while GTCO was the most traded stock by value at NGN3.33 billion.
Sectoral performance was broadly negative, as the Banking (-4.2%), Insurance (-0.7%), Consumer Goods (-0.4%) and Industrial Goods (-0.2%) indices recorded losses, while the Oil & Gas (+12.1%) index advanced.
As measured by market breadth, market sentiment was negative (0.9x), as 39 tickers lost relative to 36 gainers. SUNUASSUR (-10.0%) and CORNERST (-9.7%) topped the losers’ list, while TRANSCOHOT (+10.0%) and MRS (+10.0%) recorded the highest gains of the day.
CURRENCY
The naira depreciated by 5.4% to NGN702.19/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 10bps to 12.1%, in the absence of any significant funding pressure on the system.
Trading in the Treasury bills secondary market was bearish, as the average yield expanded by 2bps to 6.3%. Across the curve, the average yield expanded at the short (+12bps) end following sell pressures on the 91DTM (+35bps) bill but closed flat at the mid and long segments.
Meanwhile, proceedings in the Treasury bonds secondary market were quiet, as the average yield closed flat at 13.8%. Across the benchmark curve, the average yield closed flat at the short and mid segments but pared at the long (-1bp) end as investors demanded the APR-2037 (-6bps) bond.
