Sentiments in the domestic bourse turned negative, as sell-offs of top cement players – BUACEMENT (-10.0%), DANGCEM (-0.8%) and WAPCO (-7.4%) – triggered the market’s loss. Precisely, the All-Share Index declined by 1.5% to 24,479.22 points – the biggest decline since falling by 1.5% on April 6th, 2020. Accordingly, the Month-to-Date and Year-to-Date losses increased to -1.6% and -7.4%, respectively.
The total volume of trades increased by 76.8% to 280.67 million units, valued at NGN3.14 billion and exchanged in 4,464 deals. FBNH was the most traded stock by volume at 68.21 million units while NB was the most traded stock by value at NGN805.42 million.
Sectoral performance was broadly negative as the Industrial Goods (-7.5%), Banking (-1.3%), Oil & Gas (-0.4%) and Insurance (-0.04%) indices all closed in the red; the Consumer Goods (+0.2%) index was the sole gainer.
Market sentiment, as measured by market breadth, was negative (0.3x), as 34 tickers declined, relative to 10 gainers. BUACEMENT (-10.0%) and CADBURY (-10.0%) were the top losers of the day, while NEIMETH (+10.0%) and OKOMUOIL (+9.9%) recorded the largest gains.
The naira weakened at the I&E window by 0.1% to NGN386.50/USD while it was flat at the parallel market at NGN460.00/USD.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 33bps to 16.0%, in the absence of any significant flows into the system.
The Treasury bills secondary market was bullish, as average yield expanded by 40bps to 2.2%. Across the curve, yield contracted at the mid (-13bps) segment, as market participants demanded the 198DTM (-62bps) instrument, while they expanded at the long (+139bps) end following a sell-off of the 345-DTM (+296bps); yield at the short end was flat. Similarly, average yield expanded by 4bps to 5.1% at the OMO secondary market.
Trading in the Treasury bond secondary market was bullish, as average yield declined by 8bps to 8.4%. Across the curve, yield contracted at the short (-20bps) and mid (-2bps) segments, as investors demanded the APR-2023 (-35bps) and FEB-2028 (-7bps) bonds, respectively; yield at the long end was flat.