August 7, 2023/Cordros Research
EQUITIES
The domestic bourse kicked off this week’s trading on a bullish note as bargain-hunting in MTNN (+1.1%) spurred a 0.2% increase in the All-Share Index to 65,336.80 points. Accordingly, the Month-to-Date and Year-to-Date returns settled at +1.6% and +27.5%, respectively.
The total volume of trades declined by 7.9% to 334.33 million units, valued at NGN3.89 billion and exchanged in 6,940 deals. STERLINGNG was the most traded stock by volume at 55.14 million units, while MTNN was the most traded stock by value at NGN559.39 million.
Analysing by sectors, the Banking (+0.8%) and Oil & Gas (+0.1%) indices recorded gains, while the Insurance (-1.2%) and Consumer Goods (-0.1%) indices declined. The Industrial Goods index closed flat.
As measured by market breadth, market sentiment was mixed (1.0x), as an equal number of tickers (25) gained and lost. ENAMELWA (+9.9%) and WEMABANK (+9.8%) topped the gainer’s list, while OMATEK (-8.8%) and PRESTIGE (-7.8%) recorded the highest losses of the day.
CURRENCY
The naira depreciated by 4.1% to NGN774.78/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 37bps to 7.2%, in the absence of significant outflows from the system.
Trading activities in the Treasury bills secondary market were muted, as the average yield was unchanged at 6.7%.
Meanwhile, proceedings in the Treasury bond secondary market was bearish, as the average yield expanded by 5bps to 13.4%. Across the benchmark curve, the average yield closed flat at the short and mid segments but expanded at the long (+9bps) end due to profit-taking activities on the APR-2037 (+40bps) bond.