January 22, 2024/Cordros Report
EQUITIES
Activities in the local bourse opened the week on a positive note, underpinned by sustained bargain hunting in DANGCEM (+10.0%). Thus, the benchmark index notched higher by 1.3% to close at 95,768.12 points, pushing the YTD return to +28.1%.
The total volume traded decreased by 14.5% to 721.81 million units, valued at NGN14.41 billion, and exchanged in 15,757 deals. TRANSCORP was the most traded stock by volume at 66.52 million units, while NESTLE was the most traded stock by value at NGN1.97 billion.
Sectoral performance was mixed, as the Industrial Goods (+5.2%) and Oil & Gas (+0.6%) indices advanced, while the Insurance (-2.5%), Consumer Goods (-1.5%) and Banking (-0.9%) indices declined.
As measured by market breadth, market sentiment was negative (0.5x), as 45 tickers lost relative to 24 gainers. FLOURMILL (-10.0%) and UPL (-10.0%) recorded the most significant losses of the day, while SUNUASSUR (+10.0%) and DANGCEM (+10.0%) topped the gainer’s list.
CURRENCY
The naira depreciated by 2.5% to NGN925.34/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 225bps to 21.0%, following the inflows from FGN bond coupon payments (NGN166.48 billion).
Proceedings in the Treasury bills secondary market were bearish, as the average yield expanded by 47bps to 3.9%. Across the curve, the average yield advanced at the short (+2bps) and long (+94bps) ends, driven by profit-taking activities in the 31DTM (+14bps) and 234DTM (+713bps) bills, respectively. Meanwhile, the average yield was flat at the mid segment. Elsewhere, the average yield declined marginally by 1bp to 8.4% in the OMO segment.
Trading in the FGN bonds secondary market closed on a bullish note, as the average yield pared by 1bp to 13.5%. Across the benchmark curve, the average yield expanded at the short (+13bps) end as investors sold off the MAR-2027 (+79bps) bond, while it contracted at the long (-9bps) end following demand for the JUN-2053 (-32bps) bond. Conversely, the average yield closed flat at the mid-segment.
Kindly see below our Mutual Fund prices and returns as of today.
