July 10, 2023/Cordros Report
EQUITIES
The domestic equities market carried on last week’s positive performance as the All-Share Index advanced by 2.5% to close at 64,603.69 points. Precisely, bargain-hunting in DANGCEM (+10.0%) following its share buy-back plan buoyed the impressive performance. Consequently, the Month-to-Date and Year-to-Date returns increased to +6.0% and +26.1%, respectively.
The total volume increased by 49.8% to 1.84 billion units, valued at NGN22.03 billion, and exchanged in 14,584 deals. FBNH was the most traded stock by volume and value at 198.22 million units and NGN4.42 billion, respectively.
On sectors, the Industrial Goods (+5.1%), Insurance (+4.2%), Oil & Gas (+2.6%), and Banking (+1.7%) indices advanced, while the Consumer Goods (-0.2%) index declined.
As measured by market breadth, market sentiment was largely positive (3.7x), as 71 tickers gained relative to 19 losers. NEIMETH (+10.0%) and MRS (+10.0%) recorded the most significant gains of the day, while PHARMDEKO (-9.9%) and UNIONDICON (-9.5%) topped the losers’ list.
CURRENCY
The naira appreciated by 4.4% to NGN744.07/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 8bps to 1.3%, in the absence of any significant outflow from the system.
The NTB secondary market traded quietly, as the average yield was unchanged at 6.3%.
Trading in the FGN bond secondary market was bullish, as the average yield contracted by 83bps to 12.2%. Across the benchmark curve, the average yield declined at the short (-747bps) and mid (-570bps) segments following buying interests in the MAR-2025 (-840bps) and APR-2039 (-635bps) bonds, respectively. Conversely, the average yield expanded at the long (+351bps) end due to sell pressures on the JUN-2053 (+15.44ppts) bond.
