Domestic Bourse Closes Lower by -0.1% on Sell-Offs in FBHN, WAPCO

May 18, 2022/Cordros Report

EQUITIES

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The Nigerian equities market sustained its descent following selloffs in FBNH (-3.2%) and WAPCO (-2.4%). Thus, the All-Share closed lower by 0.1% to 52,721.34 points. Accordingly, the Month-to-Date and Year-to-Date returns moderated to +6.2% and +23.4%, re0.1%spectively.

The total volume of trades declined by 53.8% to 611.97 million units, valued at NGN7.43 billion, and exchanged in 5,948 deals. FBNH was the most traded stock by volume and value at 153.34 million units and NGN1.90 billion, respectively.

Analyzing by sectors, the Insurance (+0.8%), Consumer Goods (+0.3%), Oil & Gas (+0.2%), and Banking (+0.1%) indices gained, while the Industrial Goods (-0.2) index declined.

As measured by market breadth, market sentiment was negative (0.9x), as 22 tickers lost relative to 19 gainers. ACADEMY (-9.9%) and BERGER (-8.9%) recorded the most significant losses of the day, while TRANSCOHOT (+9.8%) and CHAMPION (+7.0%) topped the gainers’ list.

CURRENCY

The naira depreciated by 0.2% to NGN419.25/USD at the I&E window.

MONEY MARKET & FIXED INCOME

The overnight lending rate expanded by 88bps to 12.4%, in the absence of any significant funding pressure on the system.

Quiet trading continued in the Treasury bills secondary market, as the average yield remained at 3.6%. Similarly, the average yield was unchanged at 4.0% in the OMO segment.

The Treasury bond secondary market was mixed but with a bullish bias, as the average yield contracted by 2bps to 11.1%. Across the benchmark curve, the average yield expanded at the short (+3bps) end due to sell-off of the JAN-2026 (+9bps) bond; but contracted at the mid (-9bps) and long (-1bp) segments following demand for the APR-2029 (-12bps) and JUL-2034 (-9bps) bonds, respectively.

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