August 9, 2023/Cordros Report
EQUITIES
The local bourse sustained yesterday’s bearish sentiments as investors sold off DANGCEM (-9.1%). Thus, the All-Share Index dipped by 1.8% to close at 64,167.39 points. Accordingly, the Month-to-Date loss settled at -0.3%, while the Year-to-Date gain moderated to +25.2%.
The total volume traded declined by 25.1% to 238.04 million units, valued at NGN2.62 billion, and exchanged in 6,001 deals. STERLINGNG was the most traded stock by volume at 32.67 million while MTNN was the most traded stock by value at NGN468.15 million.
On sectors, the Industrial Goods (-4.9%), Consumer Goods (-0.3%), Banking (-0.4%) and Oil & Gas (-0.2%) indices all printed losses, while the Insurance (+1.1%) index advanced.
As measured by market breadth, market sentiment was negative (0.9x) as 27 tickers lost relative to 23 gainers. NASCON (-10.0%) and MULTIVERSE (-10.0%) recorded the highest losses of the day, while GUINEAINS (+10.0%) and OMATEK (+10.0%) topped the gainers’ list.
CURRENCY
The naira depreciated by 3.2% to NGN782.38/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 63bps to 3.7%, in the absence of any significant funding pressure on the system.
Proceedings in the Treasury bills secondary market were bullish as the average yield declined by 2bps to 7.3%. Across the curve, the average yield closed flat at the short and mid segments but contracted at the long (-2bps) end, following buying interest in the 351DTM (-29bps) bill.
In the same vein, trading in the Treasury bond secondary market was bullish, as the average yield contracted by 2bps to 13.5%. Across the benchmark curve, the average yield declined at the short (-1bp) and long (-3bps) ends due to demand for the MAR-2024 (-5bps) and APR-2049 (-11bps) bonds, respectively. Meanwhile, the average yield closed flat at the mid segment.
