September 4, 2023/Cordros Report
EQUITIES
Activities in the domestic equities market resumed this week on a positive note as bargain-hunting in ZENITHBANK (+7.9%), GTCO (+6.6%), and DANGSUGAR (+10.0%) spurred a 1.1% increase in the benchmark index. Consequently, the All-Share Index closed at 68,279.14 points with the MTD and YTD gains increasing to +2.6% and +33.2%, respectively.
The total volume of trades increased by 67.9% to 845.68 million units, valued at NGN13.04 billion, and exchanged in 11,934 deals. REGALINS was the most traded stock by volume at 100.98 million units, while ZENITHBANK was the most traded stock by value at NGN2.80 billion.
Analyzing by sectors, the Banking (+5.7%) and Consumer Goods (+1.6%) indices recorded gains, while the Insurance (-2.8%) and Industrial Goods (-0.1%) indices declined. The Oil & Gas index closed flat.
As measured by market breadth, market sentiment was positive (2.1x), as 39 tickers gained relative to 19 losers. DANGSUGAR (+10.0%) and NASCON (+10.0%) recorded the highest gains of the day, while CHIPLC (-9.6%) and CORNERST (-9.3%) topped the losers’ list.
CURRENCY
The naira depreciated by 1.0% to NGN747.87/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 17bps to 2.3%, in the absence of any significant inflows into the system.
The Treasury bills secondary market traded with mixed sentiments, albeit with a bullish tilt, as the average yield pared by 1bp to 7.6%. Across the curve, the average yield was flat at the short and mid segments but declined at the long (-1bp) end due to demand for the 325DTM (-1bp) bill. Similarly, the average yield pared by 1bp to 13.3% in the OMO segment.
Elsewhere, proceedings in the Treasury bond secondary market were quiet as the average yield closed flat at 14.1%. Across the benchmark curve, the average yield pared at the short (-1bp) end as investors demanded the MAR-2024 (-3bps) bond but was unchanged at the mid and long segments.
