August 14, 2023/Cordros Report
EQUITIES
Activities in the Nigerian stock market kicked off this week on a bearish note as sell pressures in BUACEMENT (-2.8%) led the benchmark index lower. Consequently, the NGX ASI declined by 0.2% to 65,210.49 points, with the Month-to-Date and Year-to-Date gains moderating to +1.4% and +27.2%, respectively.
The total volume traded declined by 47.1% to 259.04 million units, valued at NGN4.20 billion, and exchanged in 5,899 deals. TRANSCORP was the most traded stock by volume at 41.76 million units, while GTCO was the most traded stock by value at NGN585.10 million.
Sectoral performance was mixed, as the Banking (-1.1%) and Oil & Gas (-0.4%) indices declined, while the Insurance (+0.8%) and Consumer Goods (+0.5%) indices recorded gains. Meanwhile, the Industrial Goods index closed flat.
As measured by market breadth, market sentiment was negative (0.9x), as 23 tickers lost relative to 21 gainers. ETERNA (-9.9%) and SUNUASSUR (-9.6%) topped the loser’s list, while CORNERST (+9.3%) and OMATEK (+8.8%) recorded the highest gains of the day.
CURRENCY
The naira depreciated by 0.5% to NGN744.41/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 300bps to 5.8%, in the absence of any significant outflow from the system.
Activities in the Treasury bills secondary market were bullish, as the average yield contracted by 3bps to 7.3%. Across the curve, the average yield contracted at the short (-11bps) and long (-1bp) ends following interests in the 31DTM (-56bps) and 346DTM (-1bp) bills, respectively. In contrast, the average yield closed flat at the mid-segment. Meanwhile, the average yield in the OMO segment settled at 12.2%.
Elsewhere, the Treasury bond secondary market traded with bearish sentiments, as the average yield expanded by 4bps to 13.6%. Across the benchmark curve, the average yield expanded at the short (+15bps) end due to selloffs of the JAN-2026 (+79bps) bond. Conversely, the average yield was unchanged at the mid and long segments.