July 27, 2023/Cordros Report
EQUITIES
The local bourse extended yesterday’s loss as investors sold off GTCO (-3.1%) and FBNH (-4.4%) stocks. As a result, the All-Share Index closed at 65,482.91 points, declining by 0.3%. Accordingly, the Month-to-Date and Year-to-Date returns moderated to +7.4% and +27.8%, respectively.
The total volume traded increased by 1.8% to 509.3 million units, valued at NGN4.80 billion, and exchanged in 8,070 deals. JAPAULGOLD was the most traded stock by volume at 115.70 million units, while UBA was the most traded stock by value at NGN595.92 million.
Analysing by sectors, the Insurance (-1.0%) and Consumer Goods (-0.7%) indices declined, while the Oil & Gas (+0.9%) index advanced. On the other hand, the Banking and Industrial Goods indices closed flat.
As measured by market breadth, market sentiment was negative (0.4x), as 38 tickers lost relative to 14 gainers. JAPAULGOLD (-9.9%) and CADBURY (-9.8%) topped the losers’ list, while LASACO (+10.0%) and MULTIVERSE (+10.0%) recorded the most significant gains of the day.
CURRENCY
The naira depreciated by 3.7% to NGN768.60/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted significantly by 10.20ppts to 1.3%, following inflows from FAAC disbursement (NGN561.49 billion).
Trading in the NTB secondary market was bearish, as the average yield expanded by 281bps to 7.1%. Across the curve, the average yield advanced at the short (+179bps), mid (+234bps), and long (+334bps) segments following profit-taking on the 91DTM (+204bps), 182DTM (+268bps) and 336DTM (+422bps) bills, respectively.
Similarly, proceedings in the Treasury bond secondary market were bearish as the average yield increased by 18bps to 13.1%. Across the benchmark curve, the average yield expanded at the short (+59bps) and long (+4bps) ends, as market participants sold off the MAR-2024 (+294bps) and JUN-2053 (+44bps) bonds, respectively. Conversely, the average yield closed flat at the mid segment.
