July 5, 2023/Cordros Report
EQUITIES
The local bourse reversed yesterday’s loss as interest in BUACEMENT (+9.4%) drove the benchmark index higher. Precisely, the ASI advanced by 1.3% to 61,523.57 points. Consequently, the Month-to-Date and Year-to-Date returns increased to +1.9% and 20.0%, respectively.
The total volume traded declined by 23.6% to 846.32 million units, valued at NGN10.31 billion, and exchanged in 9,815 deals. FBNH was the most traded stock by volume and value at 89.24 million units and NGN1.65 billion, respectively.
On sectors, the Banking (+6.2%), Industrial Goods (+3.9%), Oil & Gas (+0.2%), and Consumer Goods (+0.1%) indices advanced, while the Insurance (-4.7%) index declined.
As measured by market breadth, market sentiment was positive (1.4x), as 43 tickers gained relative to 30 losers. LEARNAFRCA (+10.0%) and GOLDBREW (+10.0%) topped the gainers’ list, while NEM (-10.0%) and LASACO (-10.0%) recorded the highest losses of the day.
CURRENCY
The naira printed NGN768.44/USD at the I&E window as of 4th July.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 42bps to 1.2%, in the absence of any significant inflows into the system.
Sentiments in the NTB secondary market were bullish, as the average yield declined by 8bps to 6.3%. Across the curve, the average yield closed flat at the short and mid segments but contracted at the long (-13bps) end, following buying interest in the 246DTM (-102bps) bill.
Meanwhile, the FGN bond secondary market closed on a bearish note, as the average yield expanded by 4bp to 13.1%. Across the benchmark curve, the average yield advanced at the short (+20bps) end as participants sold off the MAR-2027 (+126bps) bond but contracted at the long (-2bps) end due to demand for the MAR-2050 (-22bps) bond. Conversely, the average yield closed flat at the mid segment.
