August 28, 2023/Cordros Report
EQUITIES
The Nigerian equities market maintained last week’s positive run as bargain-hunting in BUAFOODS (+9.1%) and DANGSUGAR (+10.0%) pushed the benchmark index 0.9% higher. Consequently, the All-Share Index closed at 66,151.38 points, with the MTD and YTD gains increasing to +2.8% and +29.1%, respectively.
The total volume traded declined by 12.6% to 311.12 million units, valued at NGN3.92 billion, and exchanged in 7,193 deals. ACCESSCORP was the most traded stock by volume at 43.70 million units, while DANGSUGAR was the most traded stock by value at NGN820.84 million.
From a sectoral perspective, the Banking (-0.9%) and Insurance (-0.4%) indices declined, while the Industrial Goods and Oil & Gas indices closed flat. The Consumer Goods (+5.9%) index was the sole gainer of the day.
As measured by market breadth, market sentiment was positive (1.4x), as 33 tickers gained relative to 24 losers. OMATEK (+10.0%) and THOMASWY (+10.0%) recorded the most significant gains of the day, while CWG (-10.0%) and JOHNHOLT (-9.8%) topped the losers’ list.
CURRENCY
The naira appreciated by 0.8% to NGN772.12/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 130bps to 23.9%, in the absence of any significant inflows into the system.
Activities in the Treasury bills secondary market were bullish, as the average yield contracted by 89bps to 7.3%. Across the curve, the average yield declined at the short (-266bps) and mid (-131bps) segments as participants demanded the 10DTM (-385bps) and 101DTM (-247bps) bills, respectively. Meanwhile, the selloff of the 318DTM (+125bps) bill drove the yield expansion at the long (+6bps) end. Elsewhere, the average yield pared by 1bp to 11.2% in the OMO segment.
Similarly, the FGN bond secondary market traded with bullish sentiments, as the average yield contracted by 5bps to 14.0%. Across the benchmark curve, the average yield contracted at the short (-16bps) and mid (-4bps) segments as investors demanded the MAR-2024 (-102bps) and APR-2029 (-10bps) bonds, respectively. Conversely, the average yield was flat at the long end.
