July 18, 2023/Cordros Report
EQUITIES
The Nigerian equities market extended yesterday’s positive trading following bargain buying in DANGCEM (+6.7%). Specifically, the All-Share Index notched a 1.3% gain to close at 63,766.72 points. Consequently, the Month-to-Date and Year-to-Date gains increased to +4.6% and +24.4%, respectively.
The total volume traded advanced by 22.4% to 868.80 million units, valued at NGN42.81 billion, and exchanged in 8,970 deals. FCMB was the most traded stock by volume at 153.88 million units, while DANGCEM was the most traded stock by value at NGN35.81 billion.
On sectors, the Insurance (+4.3%), Industrial Goods (+3.6%), Consumer Goods (+0.7%), and Oil & Gas (+0.6%) indices advanced, while the Banking (-0.2%) index was the sole loser of the day.
As measured by market breadth, market sentiment was positive (2.5x), as 49 tickers gained relative to 20 losers. NPFMCRFBK (+10.0%) and NEM (+10.0%) topped the gainer’s list, while JAPAULGOLD (-10.0%) and FTNCOCOA (-9.8%) recorded the highest losses of the day.
CURRENCY
The naira appreciated by 7.1% to NGN742.93/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 200bps to 3.4%, in the absence of any significant funding pressures on the system.
Cautious trading continued in the NTB secondary market, as the average yield closed flat at 6.3%.
The FGN bond secondary market traded with bullish sentiments, as the average yield declined by 4bps to 12.8%. Across the benchmark curve, the average yield dipped at the short (-10bps) and long (-2bps) ends due to demand for the MAR-2025 (-53bps) and MAR-2050 (-18bps) bonds, respectively. Meanwhile, the average yield closed flat at the mid-segment.
