September 5, 2023/Cordros Report
EQUITIES
The local bourse sustained its positive performance in today’s trading session as bargain hunting in a few consumer goods players – BUAFOODS (+2.8%) and DANGSUGAR (+5.2%) – underpinned market performance. Thus, the All-Share Index advanced by 0.1% to 68,334.68 points. Accordingly, the Month-to-Date and Year-to-Date gains increased to +2.7% and +33.3%, respectively.
The total volume traded declined by 34.0% to 557.85 million units, valued at NGN10.21 billion, and exchanged in 9,818 deals. UBA was the most traded stock by volume at 63.32 million units, while GTCO was the most traded stock by value at NGN1.53 billion.
From a sectoral perspective, the Consumer Goods (+2.0%) index advanced, while the Banking (-0.6%) and Insurance (-0.1%) indices declined. The Industrial Goods and Oil & Gas indices closed flat.
As measured by market breadth, market sentiment was mixed (1.0x), as an equal number of tickers (30) gained and lost. OMATEK (+10.0%) and MULTIVERSE (+10.0%) topped the gainers’ list, while NSLTECH (-10.0%) and CHELLARAM (-9.8%) recorded the highest losses of the day.
CURRENCY
The naira appreciated by 0.4% to NGN744.97/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 115bps to 3.4%, in the absence of any funding pressure on the system.
The Treasury bills secondary market traded cautiously, with market participants anticipating Wednesday’s PMA. As a result, the average yield closed flat at 7.6%. Similarly, the average yield was unchanged at 13.3% in the OMO segment.
Proceedings in the FGN bond secondary market were bearish, as the average yield expanded by 5bps to 14.1%. Across the benchmark curve, the average yield declined at the short (-2bps) end as investors demanded the FEB-2028 (-12bps) bond but expanded at the mid (+6bps) and long (+9bps) segments as market players sold off the JUN-2033 (+23bps) and JUL-2034 (+45bps) bonds, respectively.
