May 12, 2022/Cordros Report
Trading in the domestic bourse sustained its positive momentum as investors’ interest in WAPCO (+9.9%) drove the benchmark index higher. Accordingly, the All-Share Index rose by 0.2% to 52,917.76 points. Consequently, the Month-to-Date and Year-to-Date returns increased to +6.6% and +23.9%, respectively.
The total volume of trades increased by 2.1% to 426.02 million units, valued at NGN5.70 billion, and exchanged in 7,639 deals. TRANSCORP was the most traded stock by volume at 94.40 million units, while WAPCO was the most traded stock by value at NGN601.95 million.
On sectors, the Consumer Goods (+1.4%), Industrial Goods (+0.1%), and Oil & Gas (+0.5%) indices advanced, while the Insurance (-2.4%) and Banking (-0.9%) indices declined.
As measured by market breadth, market sentiment was positive (1.3x), as 29 tickers gained relative to 23 losers. FIDSON (+10.0%) and ETERNA (+9.9%) topped the gainers’ list, while ACADEMY (-9.7%) and CHIPLC (-9.7%) recorded the most significant losses of the day.
The naira depreciated by 0.3% to NGN420.00/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 138bps to 5.0%, despite outflows for net NTB issuances (NGN10.39 billion).
The NTB secondary market traded quietly, as the average yield was unchanged at 3.7%. Similarly, the average yield was flat at 4.0% in the OMO segment.
Trading activities in the Treasury bond secondary market were mixed, albeit with bullish sentiments as the average yield contracted slightly by 1bp to 11.1%. Across the benchmark curve, the average yield pared at the long (-1bps) end as investors demanded the APR-2049 (-10bps) bond, but closed flat at the short and mid segments.