August 15, 2023/Cordros Report
EQUITIES
The domestic equities market extended yesterday’s loss in today’s session, as investors took profits off DANGSUGAR (-4.4%) and FBNH (-1.9%) stocks. Thus, the All-Share Index dipped by 0.2% to 64,928.98 points. Accordingly, the Month-to-Date and Year-to-Date returns moderated to +0.9% and +26.7%, respectively.
The total volume traded advanced by 8.3% to 280.47 million units, valued at NGN4.65 billion, and exchanged in 6,296 deals. TRANSCORP was the most traded stock by volume at 36.47 million units, while MTNN was the most traded stock by value at NGN972.34 million.
Across our sectoral coverage, the Industrial Goods (-1.2%), Consumer Goods (-0.7%), Oil & Gas (-0.4%), and Banking (-0.1%) indices settled lower, while the Insurance (+1.3%) index was the sole gainer of the day.
As measured by market breadth, market sentiment was negative (0.6x), as 31 tickers lost relative to 18 gainers. ETERNA (-9.9%) and SUNUASSUR (-9.6%) recorded the most significant losses of the day, while TANTALIZER (+10.0%) and IKEJAHOTEL (+9.8%) topped the gainers’ list.
CURRENCY
The naira depreciated by 3.9% to NGN774.77/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 260bps to 8.4%, in the absence of any significant outflow from the system.
The NTB secondary market traded with bullish sentiments, as the average yield contracted by 5bps to 7.3%. Across the curve, most of the day’s activity was witnessed at the long (-9bps) end as market participants demanded the 296DTM (-105bps) bill; the average yield was flat at the short and mid segments. Elsewhere, the average yield contracted by 41bps to 11.8% in the OMO segment.
Trading in the FGN bond secondary market was bearish, as the average yield expanded by 8bps to 13.7%. Across the benchmark curve, the average yield was flat at the short end but expanded at the mid (+13bps) and long (+9bps) segments due to profit-taking on the APR-2029 (+33bps) and JUN-2053 (+64bps) bonds, respectively.
