August 29, 2023/Cordros Report
EQUITIES
The local bourse extended yesterday’s positive sentiments as sustained interest in DANGSUGAR (+10.0%) drove a 0.5% increase in the All-Share Index to 66,490.34 points. Accordingly, the Month-to-Date and Year-to-Date returns advanced to +3.4% and +29.7%, respectively.
The total volume traded increased by 40.5% to 436.96 million units, valued at NGN7.01 billion, and exchanged in 7,932 deals. FBNH was the most traded stock by volume at 55.15 million units, while NESTLE was the most traded stock by value at NGN1.32 billion.
Analysing by sectors, the Banking (+1.6%), Consumer Goods (+1.0%), and Industrial Goods (+0.2%) indices recorded gains, while the Insurance (-1.6%) and Oil & Gas (-0.1%) indices printed losses.
As measured by market breadth, market sentiment was positive (1.1x), as 34 tickers gained relative to 32 losers. CHAMPION (+10.0%) and FLOURMILL (+10.0%) topped the gainers’ list, while CWG (-10.0%) and LINKASSURE (-10.0%) recorded the highest losses of the day.
CURRENCY
The naira depreciated by 0.4% to NGN775.34/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted significantly by 20.8% to 3.1%, following the inflow from OMO maturities (NGN40.00 billion).
Trading in the Nigerian Treasury bill secondary market was quiet, as the average yield closed flat at 7.3%. Similarly, the average yield was flat at 11.2% in the OMO segment.
The FGN bond secondary market closed on a bullish note, as the average yield contracted by 4bps to 14.0%. Across the benchmark curve, the average yield closed flat at the short end but declined at the mid (-6bps) and long (-4bps) segments as market participants demanded the JUN-2033 (-18bps) and JUL-2034 (-34bps) bonds, respectively.
