July 4, 2023/Cordros Report
EQUITIES
Sentiments in the domestic bourse turned negative, as profit-taking activities witnessed in BUACEMENT (-9.9%) and MTNN (-1.8%) caused a 2.0% decrease in the benchmark index. Thus, the All-Share Index closed at 60,715.04 points. Consequently, the Month-to-Date and Year-to-Date returns moderated to -0.4% and +18.5%, respectively.
The total volume of trade declined by 8.1% to 1.11 billion units, valued at NGN12.21 billion, and exchanged in 12,194 deals. FCMB was the most traded stock by volume at 180.75 million units, while ZENITHBANK was the most traded stock by value at NGN1.80 billion.
Sectoral performance was broadly bearish as the Industrial Goods (-4.4%), Banking (-3.9%), Consumer Goods (-1.4%), and Insurance (-0.5%) indices declined, while the Oil & Gas (+1.9%) index was the sole gainer.
As measured by market breadth, market sentiment was negative (0.8x), as 44 tickers lost relative to 33 gainers. LASACO (-13.9%) and PZ (-10.0%) recorded the highest gains of the day, while CHIPLC (+10.0%) and ETERNA (+10.0%) topped the gainer’s list.
CURRENCY
The naira depreciated by 3.5% to NGN768.44/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate was unchanged at 1.6%, as system liquidity closed at a net long position (NGN751.55 billion).
The Treasury bills secondary market traded with mixed sentiments, albeit with a bearish tilt, as the average yield pared by 1bp to 6.3%. Across the curve, the average yield closed flat at the short and mid segments but contracted at the long (-2bps) end following demand for the 247DTM (-18bps) bill.
Elsewhere, the Treasury bond secondary market was bullish, as the average yield expanded by 12bps to 13.1%. Across the benchmark curve, the average yield closed flat at the short end but expanded at the mid (+20bps) and long (+16bps) segments due to sell pressures on the APR-2032 (+42bps) and APR-2037 (+44bps) bonds, respectively.
