BUAFOODS Drags NGX Indices -0.1% to Open Week Bearish

January 17, 2022/Cordros Update

EQUITIES

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The Nigerian equities market started the week on a negative note as profit-taking witnessed in BUAFOODS (-6.4%) caused a 0.1% decline in the benchmark index. Thus, the NGX ASI settled at 44,399.66 points. Consequently, the Year-to-Date gain moderated to +3.9%.

The total volume traded declined by 47.2% to 214.32 million units, valued at NGN2.69 billion, and exchanged in 4,410 deals. TRANSCORP was the most traded stock by volume at 39.35 million units, while GTCO was the most traded stock by value at NGN625.09 million.

On sectors, the Industrial Goods (+0.8%), Oil & Gas (+0.2%), and Consumer Goods (+0.2%) indices recorded gains, while the Insurance (-0.2%) and Banking (-0.1%) indices declined.

As measured by market breadth, market sentiment was negative (0.7x) as 21 tickers lost to 14 gainers. VERITASKAP (-8.7%) and MBENEFIT (-7.4%) recorded the most significant losses of the day, while ETERNA (+7.0%) and WAPIC (+6.3%) topped the gainers’ list.

CURRENCY

The naira was flat at NGN416.33/USD at the I&E window.

MONEY MARKET & FIXED INCOME

The overnight lending rate expanded by 50bps to 15.3% in the absence of any significant inflow into the system.

At NTB segment of the treasury bills secondary market, trading ended quietly, as the average yield was unchanged at 4.4%. Similarly, the average yield was flat at 5.6% at the OMO segment.

Trading in the secondary bond market was mixed, albeit with a bullish tilt as the average yield declined by 2bps to 11.3%. Across the benchmark curve, the average yield expanded at short (+2bps) end as investors sold off JAN-2026 (+18bps) bond, but contracted at mid (-5bps) and long (-4bps) segments following investors’ demand for FEB-2028 (-21bps) and MAR-2036 (-14bps) bonds, respectively.

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