August 9, 2022/Cordros Report
EQUITIES
The Nigerian equities market dipped further into the bear territory as investors sold off DANGCEM (-9.1%) and MTNN (-4.3%). Accordingly, the All-Share Index fell below the 50,000 psychological mark, declining by 2.3% to 49,350.71 points. Consequently, the Month-to-Date and Year-to-Date returns printed -2.0% and +15.5%, respectively.
The total volume traded declined by 32.1% to 140.61 million units, valued at NGN1.60 billion, and exchanged in 3,895 deals. AIICO was the most traded stock by volume at 14.85 million units, while SEPLAT was the most traded stock by value at NGN441.75 million.
Sectoral performance was broadly negative, as the Industrial Goods (-4.8%), Consumer Goods (-0.3%), and Oil & Gas (-0.3%) indices closed lower, while the Banking (+0.6%) and Insurance (+0.3%) indices recorded gains.
As measured by market breadth, market sentiment was negative (0.8x) as 12 tickers gained relative to 15 losers. CORNERST (-9.3%) and DANGCEM (-9.1%) recorded the most significant losses of the day, while NEM (+10.0%) and PRESTIGE (+10.0%) topped the gainers’ list.
CURRENCY
The naira appreciated by 0.5% to NGN428.75/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate was unchanged at 15.0%, despite the inflow from OMO maturities (NGN5.00 billion).
Activities in the Treasury bills secondary market were lull, as the average yield was unchanged at 7.6%. Similarly, the average yield closed flat at 11.1% in the OMO segment.
Proceedings in the Treasury bond secondary market were quiet, as the average yield closed flat at 12.4%. Across the benchmark curve, the average yield closed flat at the short and mid segments but inched higher at the long (+1bp) end as investors sold off the APR-2037 (+4bps) bond.
