July 24, 2023/Cordros Report
EQUITIES
The Nigerian equities market opened the week positively as demand for STANBIC (+10.0%), and FBNH (+9.8%) drove the All-Share Index higher by 0.4% to 65,268.28 points. Accordingly, the Month-to-Date and Year-to-Date returns printed +7.1% and +27.4%, respectively.
The total volume traded increased by 7.9% to 831.50 million units, valued at NGN12.94 billion, and exchanged in 9,768 deals. FBNH was the most traded stock by volume and value at 346.99 million units and NGN7.44 billion, respectively.
Sectoral performance was mixed, as the Insurance (+0.2%) index advanced, while the Banking (-0.8%) index declined. On the other hand, the Industrial Goods, Consumer Goods, and Oil and Gas indices closed flat.
As measured by market breadth, market sentiment was mixed (1.0x), as 33 tickers lost relative to 32 gainers. IKEJAHOTEL (-10.0%) and MULTIVERSE (-10.0%) recorded the most significant losses of the day, while FTNCOCOA (+10.0%) and GLAXOSMITH (+10.0%) topped the gainer’s list.
CURRENCY
The naira depreciated by 1.8% to NGN792.04/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 117bps to 19.8%, in the absence of any significant inflow into the system.
Activities in the Treasury bills secondary market were bullish, as the average yield contracted by 2bps to 4.3%. Across the curve, the average yield closed flat at the short and mid segments but contracted at the long (-4bps) end following buying interest in the 339DTM (-23bps) bill.
Similarly, the FGN bonds secondary market closed on a bullish note, as the average yield contracted by 7bps to 12.7%. Across the benchmark curve, the average yield declined at the short (-5bps) and long (-9bps) ends as market participants demanded the FEB-2028 (-16bps) and APR-2037 (-26bps) bonds, respectively. Conversely, the average yield closed flat at the mid-segment.
