July 13, 2023/Cordros Report
EQUITIES
The local stock market racked up further loss in today’s trading session as sell pressures on MTNN (-4.6%) and some banking stocks weighed down the bourse, causing the All-Share Index to plunge by 2.0% to 62,748.94 points. Accordingly, the Month-to-Date and Year-to-Date returns moderated to +2.9% and +22.4%, respectively.
The total volume traded declined by 31.4% to 798.47 million units, valued at NGN10.45 billion, and exchanged in 10,296 deals. UBA was the most traded stock by volume at 99.02 million units, while GTCO was the most traded stock by value at NGN1.77 billion.
Sectoral performance remained negative, as the Banking (-6.6%), Insurance (-4.1%), Oil & Gas (-0.7%), and Consumer Goods (-0.1%) indices declined, while the Industrial Goods (+0.7%) index advanced.
As measured by market breadth, market sentiment was negative (0.3x), as 57 tickers lost relative to 19 gainers. TRANSCOHOT (-10.0%) and OMATEK (-10.0%) topped the losers’ list, while JOHNHOLT (+10.0%) and DANGSUGAR (+9.9%) recorded the highest gains of the day.
CURRENCY
The naira appreciated by 4.9% to NGN746.28/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 8bps to 1.4%, in the absence of any significant outflows from the system.
Quiet trading persisted in the Treasury bills secondary market as the average yield closed flat at 6.3%.
Meanwhile, proceedings in the FGN bond secondary market were bearish, as the average yield expanded by 6bps to 12.8%. Across the benchmark curve, the average yield contracted at the short (-1bp) end, as investors demanded the MAR-2024 (-2bps) bond, but expanded at the long (+11bps) end due to the sell-off of the JUL-2034 (+46bps) bond. Elsewhere, the average yield closed flat at the mid segment.
